Lok Sabha Question No. 4467 (UNSTARRED), answered on 2016-12-14
Subject: NMDFC Loan
Ministry: MINORITY AFFAIRS
Asked by: UDAY PRATAP SINGH

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS LOK SABHA UNSTARRED QUESTION No.4467 TO BE ANSWERED ON 14.12.2016

## NMDFC LOAN

## 4467.  SHRI UDAY PRATAP SINGH:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a) the rate of interest on concessional loan provided for socio-economic development of backward classes of minority community during the last two years and the current year;
- (b)  whether  the  Government  has  increased  the  share  of  Rs.  150  crore  grant  to National  Minorities  Development  &  Finance  Corporation  (NMDFC)  during  the  last two years and the current year; and
- (c) if so, the State/UT-wise details thereof?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF MINORITY AFFAIRS

## (SHRI MUKHTAR ABBAS NAQVI)

(a):  National  Minorities  Development  and  Finance  Corporation  (NMDFC),  provides concessional loans  to  minorities  for  self-employment  and  income  generating activities,  through  the  State  Channelising  Agencies  (SCAs)  nominated  by  the respective  State  Governments/UT  Administration.  For  availing  assistance  under NMDFC  schemes,  under  Credit  Line  -1,  the  annual  household  income  eligibility criterion  is  Rs.81,000  for  rural  areas  and  Rs.1.03  lakh  for  urban  areas.  Higher annual household income eligibility criterion of upto Rs.6.00 lakh under Credit Line - 2 has also been introduced for increasing coverage of beneficiaries under NMDFC schemes.

The rates of interest under variouslending schemes of NMDFC,implemented during the last two years and the current year is as follows:-

1. Term Loan :-  Maximum Loan of up to Rs.20.00 Lakh per beneficiary is available under Credit Line-1 at an interest rate of 6% per annum. Higher  loan  of  maximum  up  to  Rs.30.00  Lakh  per  beneficiary  is  available  under Credit Line-2 at an interest rate of 8% per annum for male beneficiaries and  6%

per annum for female beneficiaries.

- 2.Micro  Finance :-Maximum  loan  upto  Rs.1.00  lakh  per  Self  Help  Group  (SHG) member is available under Credit Line -1 at an interest rate of 7% per annum.

Higher loan of maximum upto Rs.1.50 lakh per SHG member is available under Credit Line-2 at an interest rate of 10% per annum for male beneficiaries and 8% per annum for female beneficiaries.

3. Educational Loan :- The Educational Loan of upto Rs.15.00 lakh (Rs.20 lakh for courses  abroad)  is  available  at  an  interest  rate  of  3%  per  annum  for  pursuing technical and professional courses with maximum course duration of 5 years. The scheme is implemented through SCAs and is available under Credit Line-1. Higher  Educational  Loan  of  upto  Rs.20.00  lakh  (Rs.30  lakh  for  courses  abroad) under  Credit  Line-2  is  available  at  an  interest  rate  of  8%  per  annum  for  male

candidates and at 5% per annum for female beneficiaries. (b)  and  (c):  The  authorised  share  capital  of  NMDFC  has  been  increasedfrom  Rs. 1500 crore to Rs.3,000 croreon 10 th February, 2015. Ministry contributes equity to the  NMDFC.  During  last  two  years  and  the  current  year,  Ministry  has  already contributed Rs. 290 crore as Central Government equity contribution to NMDFC. ***