The National Minority Finance Development Corporation (NMFDC), operating under the Ministry of Minority Affairs, Government of India, has started disbursing term loans up to 30 lakhs for self-employment, for those who belong to the approved minority communities in India. The corporation was incorporated as a National Level Apex Body for the benefit of Minorities as defined under the National Commission for Minorities Act 1992.
The primary aim of NMDFC is to provide concessional finance to the Minorities for self-employment and other income generation activities. The notified Minorities according to the National Commission for Minorities Act are Muslims, Christians, Sikhs, Buddhists, Parsis & Jains. Priority will be given to Artisans & Women.
The schemes are implemented and loan amounts are disbursed via State Channelizing Agencies (SCA), which is usually the state commission for minorities.
Two types of term loans are disbursed mainly, credit lines 1 & 2. Credit line-1 loan is suitable for projects costing up to 20 Lacs whereas Credit Line-2 loan is allotted for projects which cost up to 30 Lacs. Both loans charge 6% interest from the female beneficiary, the males who take credit line-2 loans will be charged with 8% interest per annum.
90% of the loan amount can be availed through this scheme. The applicant has to find at least 5% of the required amount and the rest will be given by the corresponding state agency.
According to the NMDFC website, the loans are allotted in agricultural, technical, artisan, small business and transport sectors.
