Lok Sabha Question No. 588 (UNSTARRED), answered on 2019-02-06
Subject: NMDFC
Ministry: MINORITY AFFAIRS
Asked by: L.R. Shivaramegowda, ANJU BALA, Tejpratap Singh,Yadav

## GOVERNMENT OF INDIA

## MINISTRY OF MINORITY AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO.588 TO BE ANSWERED ON 06.02.2018

## NMDFC

588. SHRI L.R. SHIVARAME GOWDA:

SHRIMATI ANJU BALA:

SHRI TEJ PRATAP SINGH YADAV:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a)  the  details  of  the  schemes  of  National  Minorities  Development and  Finance  Corporation  (NMDFC)  and  the  procedure  to  avail concessional loans under these schemes;
- (b)  the  funds  allocated  by  NMDFC  along  with  the  details  of utilisation of allocated funds by NMDFC for the last three years and the current year, State-wise;
- (c)  whether most of the beneficiaries are not in a position to avail concessional loans provided under these schemes due to complicated procedures;
- (d)  if  so,  the  corrective  steps  taken  by  the  Government  in  this regard; and
- (e) the other steps taken by the Government to make NMDFC more effective?

## ANSWER MINISTER OF MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

- (a) So far as NMDFC is concerned, its schemes are being implemented for the  socio-economic  development  of  the  'backward  sections'  amongst  the notified minorities through the State Channelising Agencies (SCAs) nominated by the respective State Governments/UT Administration.

For availing assistance under NMDFC schemes, the annual family income eligibility  criterion  under Credit  Line-1 is  Rs.98,000  for  rural  areas  & Rs.1.20  lacs  for  urban  areas.  Higher  annual  family  income  eligibility criterion of upto Rs.6.00 lacs has also been introduced as Credit Line-2, for increasing coverage of beneficiaries under NMDFC schemes.

Following schemes are being implemented by NMDFC:-

## Concessional Credit Schemes

1. Term Loan :-  Maximum Loan of up to Rs.20.00 Lacs per beneficiary is available under Credit Line-1 at an interest rate of 6% p.a. Higher loan of maximum up to Rs.30.00 Lacs per beneficiary is  available under  Credit Line-2 at an interest rate of 8% p.a. for male beneficiaries & 6% p.a for female beneficiaries.
2. Micro Finance :- Maximum loan upto Rs.1.00 lac per SHG member is available under Credit Line -1 at an interest rate of 7% p.a.  Higher loan of maximum upto Rs.1.50 lacs per SHG member is available under Credit Line-2 at an interest rate of 10% p.a. for male beneficiaries & 8% p.a for female  beneficiaries.  The  micro-finance  scheme  is  primarily  aimed  at extending  concessional  credit  to  women  beneficiaries.  The  scheme  is implemented through SCAs & also through established NGOs.
3.  Education  Loan :-  The  Educational  Loan  of  upto  Rs.20.00  lacs  for courses in India & Rs.30 lacs for courses abroad is available at an interest rate of 3% p.a. under Credit Line-1 while interest @ of 8% p.a. is charged from male beneficiaries & 5% p.a from female beneficiaries under Credit Line-2. Education Loan is provided for pursuing technical and professional courses  with  maximum  course  duration  of  5  years.  The  scheme  is implemented through SCAs.
4.  Mahila  Samridhi  Yojana :-  Skill  development  training  is  imparted  to group of women in women friendly trades. Training period is of maximum 6(six)  months  with  training  &  raw  material  cost  of  upto  Rs.1,500  per women while stipend @ Rs.1,000 is available for each women. During the period of training, the women are formed into Self Help Group, followed by infusion of micro-credit maximum upto Rs.1.00 lacs per member for the purpose  of  using  the  skill  developed  during  the  training,  for  income generation activities.

## Promotional Schemes :-

As part of its developmental mandate, NMDFC also implements promotional schemes like Vocational Training & Marketing Support for the benefit  of  its  target  groups.  Women  beneficiaries  are  given  preference. Detail is as follows:-

1. Vocational Training Scheme :-NMDFC has realigned its Vocational Training  Scheme  with  the  common  norms  prescribed  by  the  Ministry  of Skill Development & Entrepreneurship (MSDE) viz., 'Kaushal Se Kushalta'. Under this scheme, skill development training programs are organized as per  common  norms.    Training  programs  of  200  to  250  hrs  duration  are organized at prescribed hourly cost.  Stipend of Rs.1,000 per candidate per

month and the cost of certification of the trained candidates are borne by NMDFC.    There  is  placement  guarantee  of  minimum  70%  candidates trained  under  the  scheme.    This  promotional  scheme  is    implemented through State Channelising Agencies of NMDFC

2.    Marketing  Assistance Scheme:The Marketing Assistance Scheme is meant  for  individual  crafts  persons,  beneficiaries  of  NMDFC  as  well  as SHGs  &  is  implemented  through  the  SCAs.  The  scheme  envisages  to promote sale & marketing of their products at remunerative prices through participation /organizing exhibitions at State/District level.

(b) NMDFC  utilizes  fund  allocated  by  the  Central  Govt.  in  its  equity alongwith  the  repayments  received  from  State  Channelising  Agencies (SCAs) for disbursement to respective SCAs.  The detail of fund allocated by the  Central  Govt.    in  equity  of  NMDFC  &  fund  disbursed  by  NMDFC  to SCAs  during  the  last  three  years  and  current  financial  year  2018-19  is given in following table:-

## Amount in Rs/Crores

| Year    |   Allocation by Ministry for Contribution in Equity of NMDFC | Funds Disbursed for utilization by SCAs/States   |
|---------|--------------------------------------------------------------|--------------------------------------------------|
| 2015-16 |                                                          120 | 473.29                                           |
| 2016-17 |                                                          140 | 503.32                                           |
| 2017-18 |                                                          170 | 570.83                                           |
| 2018-19 |                                                          165 | 515.27 (as on 28.01.2019)                        |

The  State/SCA-wise  detail  of  fund  drawn/utilised  by  respective  SCAs during  last  3  years  and  current  financial  year  2018-19  is  enclosed  as Annexure-1.

- (c)  &  (d) So  far  as  NMDFC  is  concerned,  no  such  reference  has  been received. In order to cut down on waiting time for sanction of loan for the applicant,  NMDFC  has  given  full  authority  to  the  SCAs,  for  sanction  & disbursement of loan. Further, the SCAs have also been advised to reduce the lead time, between submission of application form by the applicant to sanction of loan by the SCA and release of loan directly through Real Time Gross Settlement (RTGS) in the bank account, immediately after completion of disbursement formalities by the identified beneficiary.
- (e) Following steps have been introduced to strengthen the functioning of NMDFC for effective implementation of its schemes:-
- a) Providing Grant-In-Aid assistance by the Ministry of Minority Affairs for  strengthening  the  infrastructure  &  operational  capability  of  State Channelising  Agencies  (SCAs),  for  effective  implementation  of  NMDFC schemes.
- b) Introduction of new Annual Family Income eligibility criterion of up to  Rs.6.00  lacs  per  annum  for  greater  coverage  of  persons  from  the targeted minority communities.
- c) Quantum of loan under Term Loan scheme increased from Rs.10.00 lacs  to  Rs.30.00  lacs  while  under  Micro  Finance  scheme,  it  has  been increased  from  Rs.0.50  lac  to  Rs.1.50  lacs  per  SHG  member.    Under Education Loan scheme, the quantum of loan has been increased from Rs.5.00 lacs to Rs.20.00 lacs for domestic courses & from Rs.10.00 lacs
- d) Self  Declaration/Self  Certification/Self  Attestation  of  documents  in case of Religion Certificate, Family Income, Residence Proof, Mark Sheet,

to Rs.30.00 lacs for courses abroad. etc.

- e) Transfer  of  loan  directly  in  Bank  Account  of  Beneficiary  through National Electronic Funds Transfer (NEFT)/ Real Time Gross Settlement (RTGS)  Insurance  of  beneficiary  and  their  assets  to  safeguard  against any untoward incident.

***

## NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION

## Statement showing fund disbursed/utilised by States/SCA's during the last 3  F.Y's including current F.Y. (i.e 2015-16 to 2018-19 Upto-28.01.2019)

|         |                  |           | 2015-16               | 2015-16   | 2016-17              | 2016-17   | 2017-18               | 2017-18   | Amount Rs. In Lacs    | Amount Rs. In Lacs   |
|---------|------------------|-----------|-----------------------|-----------|----------------------|-----------|-----------------------|-----------|-----------------------|----------------------|
| Sr. No. | State            | SCA       | Amt. Disbd./Utilis ed | Benef.    | Amt. Disbd./Utilised | Benef.    | Amt. Disbd./Utilise d | Benef.    | Amt. Disbd./Utilise d | Benef.               |
| 1       | CHANDIGARH       | CHCDCL    | 0.00                  |           | 0.00                 |           | 20.00                 | 13        |                       |                      |
| 2       | CHATTISHAGARH    | CSACFDC   | 0.00                  |           | 0.00                 |           |                       |           | 222.00                | 148                  |
| 3       | DELHI            | DSCSTFDC  | 0.00                  |           | 0.00                 |           | 25.50                 | 17        |                       |                      |
| 4       | GUJRAT           | GMFDC     | 200.00                | 133       | 200.00               | 133       | 287.00                | 192       | 300.00                | 200                  |
| 5       | HIMACHAL PRADESH | HPMFDC    | 375.00                | 250       | 528.34               | 353       | 300.00                | 201       | 400.00                | 268                  |
| 6       | HARYANA          | HBCKN     | 850.00                | 567       | 0.00                 |           | 500.00                | 333       |                       |                      |
|         |                  | MDA       | 110.00                | 407       | 0.00                 |           | 30.00                 | 20        |                       |                      |
| 7       | JAMMU &KASHMIR   | JKWDC     | 834.00                | 856       | 1,035.00             | 806       | 730.00                | 587       | 1,130.00              | 853                  |
|         |                  | JKEDI     | 3,050.00              | 2,034     | 3,500.00             | 2,334     | 6,000.00              | 4000      | 4,500.00              | 3000                 |
|         |                  | JKSCSTDC  | 0.00                  |           | 100.00               | 67        | 131.00                | 87        |                       |                      |
|         |                  | JKSFC     | 0.00                  |           | 200.00               | 134       | 1,000.00              | 666       | 2,000.00              | 1334                 |
| 8       | KERALA           | KBCDC     | 6,000.00              | 4,000     | 6,550.00             | 11,200    | 8,000.00              | 15333     | 6,500.00              | 9333                 |
|         |                  | KSCFFDC   | 3,100.00              | 12,067    | 2,100.00             | 8,067     | 3,200.00              | 12134     | 2,100.00              | 8067                 |
|         |                  | KSWDC     | 3,900.00              | 2,599     | 2,500.00             | 1,667     | 4,700.00              | 3133      | 5,405.00              | 3937                 |
|         |                  | KSMFDC    | 1,160.00              | 773       | 800.00               | 533       | 800.00                | 534       | 1,120.00              | 747                  |
| 9       | KARNATAKA        | KMDC      | 1,000.00              | 667       | 750.00               | 500       | 560.00                | 373       |                       |                      |
| 10      | MAHARASHTRA      | MAAAVM    | 0.00                  |           | 500.00               | 333       | 500.00                | 2000      |                       |                      |
| 11      | MIZORAM          | MCAB      | 200.00                | 133       | 524.00               | 349       |                       |           |                       |                      |
|         |                  | NSSWB     | 0.00                  |           | 0.00                 |           | 300.00                | 1200      | 400.00                | 1600                 |
| 12      | ODISHA           | OBCFDC    | 0.00                  |           | 0.00                 |           |                       |           |                       |                      |
| 13      | PUDUCHERRY       | PDBCMDC   | 500.00                | 917       | 200.00               | 467       |                       |           |                       |                      |
| 14      | PUNJAB           | BACKFINCO | 450.00                | 300       | 100.00               | 67        | 200.00                | 133       |                       |                      |
| 15      | RAJASTHAN        | RMFDCC    | 2,000.00              | 1,333     | 2,625.00             | 1,832     | 1,500.00              | 1000      |                       |                      |
| 16      | TAMILNADU        | TAMCO     | 1,000.00              | 2,333     | 3,500.00             | 11,667    | 3,300.00              | 10866     | 1,350.00              | 3733                 |
| 17      | TRIPURA          | TMCDC     | 1,500.00              | 999       | 2,620.00             | 1,746     | 2,500.00              | 1667      |                       |                      |
| 18      | UTTRAKHAND       | UAKWVN    | 100.00                | 67        | 0.00                 |           |                       |           | 100.00                | 67                   |
| 19      | WEST BENGAL      | WBMDFC    | 21,000.00             | 55,668    | 22,000.00            | 66,333    | 22,500.00             | 75000     | 26,000.00             | 77333                |
|         | Total            |           | 47,329.00             | 86,103    | 50,332.34            | 1,08,588  | 57,083.50             | 129489    | 51,527.00             | 1,10,620.00          |

Annexure-I