The National Minorities Development & Finance Corporation (NMDFC)The prime mandate of NMDFC is to provide concessional finance to the Minorities for self employment/ income generation activities. As per the National Commission for Minorities Act, 1992, the notified Minorities are Muslims, Christians, Sikhs, Buddhists & Parsis. Subsequently, Jain community was also added into the list of notified Minority Communities in January 2014. Under NMDFC programe, preference is given to Artisans & Women.
At present, the families having annual income up to ₹ 81,000 in Rural areas and ₹ 1,03,000 in urban areas are eligible under the NMDFC schemes. As a special initiative of NMDFC, a new annual family income eligibility limit of up to ₹6.00 lacs has been introduced with effect from September, 2014 by adopting the “Creamy Layer” criterion currently followed amongst the OBC community by Government of India.
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The detail of the financing schemes of NMDFC with revised quantum of loan & rates of Interest is given below:-
i. Term Loan Scheme
This scheme is for individual beneficiaries and is implemented through the SCAs. Under the Term Loan Scheme, projects costing up to ₹ 30.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of ₹ 27.00 lacs. The remaining cost of project is met by the SCA and the beneficiary. However the beneficiary has to contribute minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 8% p.a. on reducing balance method for male beneficiaries & 6% p.a for women beneficiaries.
ii. Educational Loan Scheme
This scheme is also for the individual beneficiaries and is implemented through the SCAs. The NMDFC extends educational loans with an objective to facilitate job oriented education for the eligible persons belonging to Minorities. Under the scheme an amount of upto ₹ 20.00 Lakhs is available at the rate ₹ 4.00 lakhs p.a. for ‘technical and professional courses‘ of durations not exceeding five years. Further, for courses abroad, a maximum amount of ₹30.00 lakhs is available @ ₹6.00 lakhs per annum for course duration of maximum 5 years. Funds for this purpose are made available to the SCAs at an interest rate of 2 % p.a. for on-lending to the beneficiaries at 8% interest p.a for male beneficiaries & at 5% p.a for women beneficiaries. The loan is payable in maximum five years after completion of the course.
iii. Micro Financing Scheme
This scheme envisages credit to the poorest amongst the poor through SCAs/NGOs and network of Self Help Groups (SHGs). It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries. Under this scheme, small loans up to a maximum of ₹ 1.50 lacs per member of SHG and ₹30.00 lacs to a group of 20 women are provided through the SCAs/NGOs & network of SHGs. Funds are given to the SCAs/NGOs, which further on-lend to the SHGs, at an interest rate not more than 10% p.a. for male beneficiaries & 8% p.a fro women beneficiaries.
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