Lok Sabha Question No. 2032 (UNSTARRED), answered on 2020-09-22
Subject: Schemes under NMDFC
Ministry: MINORITY AFFAIRS
Asked by: Sambhajirao Mane Dhairyasheel, Shrikant Eknath Shinde, Unmesh Bhaiyyasaheb Patil, Sujay Radhakrishna Vikhepatil

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2032

TO BE ANSWERED ON 22.09.2020

## SCHEMES UNDER NMDFC

## 2032.      SHRI DHAIRYASHEEL SAMBHAJIRAO MANE: DR. SHRIKANT EKNATH SHINDE: SHRI UNMESH BHAIYYASAHEB PATIL: DR. SUJAY RADHAKRISHNA VIKHE PATIL:

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 during 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 and efficient?

## Answer

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

(a) National  Minorities  Development  &  Finance  Corporation  (NMDFC)  implements  its  schemes for the socio-economic development of notified National Minorities viz., Muslims, Christians, Sikhs, Buddhists, Parsis and Jains mainly through the State Channelising Agencies (SCAs) nominated by the respective State Governments/Union Territory (UT) Administration. The detail of schemes implemented by NMDFC are as under:-

## Concessional Credit Schemes

- i. Term Loan: Under Term loan scheme maximum Loan of up to Rs.20.00 Lacs 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 Lacs 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.
- ii. Micro Finance: Under Micro Finance scheme maximum loan upto Rs.1.00 lac 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 lacs per SHG member is available under CreditLine-2 at an  interest  rate  of  10%  per  annum  for  male  beneficiaries  &  8%  per  annum  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 Non-Government Organizations (NGOs).

- iii. Education Loan :  The Educational Loan of upto Rs.20.00 lacs for courses in India & Rs.30.00 lacs  for  courses  abroad  is  available  at  an  interest  rate  of  3%  per  annum  under  Credit  Line-1 while interest @ of 8% per annum is charged from male beneficiaries & 5% per annum 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.
- iv. Virasat Scheme :  This scheme is part of the Term Loan scheme and is implemented with the objective to meet credit requirements of the Artisans, both in terms of working capital and fixed capital for purchase of equipment/tools/machineries.  Maximum loan of upto Rs.10.00 Lacs can be availed under the scheme at simple interest of 5% per annum for male artisan and at 4% per annum for female artisan.

## Promotional Schemes

As part of its developmental mandate, NMDFC also implements promotional schemes through its State Channelizing  Agencies  like  Skill  Training,  Marketing  Support  &  Mahila  Samridhi  Yojana  for  the benefit of its target groups. Women beneficiaries are given preference under these schemes. The details of promotional schemes of NMDFC is given below:

- i. Skill  Development  Scheme :  NMDFC  has  aligned  its  Skill  Development  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 is organized at prescribed hourly cost.  Stipend of Rs.1,000 per candidate per month and the cost of certification of the trained candidates is borne by NMDFC.  There is placement guarantee of minimum 70% candidates trained under the scheme.
- ii. 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.
- iii. Mahila Samridhi Yojana : Skill development training is imparted to group of women in women friendly trades. Training period is of maximum upto6 months alongwith training & raw material cost of upto Rs.1,500 per women. Stipend @ Rs.1,000 is also available for each women. During the period of training, the women are formed into Self Help Group, followed by infusion of microcredit  of  upto  Rs.1.00  lacs  per  member  for  the  purpose  of  using  the  skill  developed  during  the training, for income generation activities.

## Procedure to Avail Concessional Loan

The schemes of NMDFC are implemented through the SCAs in their respective States/UTs. The SCAs follow guidelines for sanction/disbursement of loan as broadly outlined below

## Sanction of Loan

The SCAs solicit applications through advertisement/publicity and the beneficiaries from Minority communities can obtain applications from the office of District Minority Welfare Officer / Head Office of the SCA. Self-Declaration / Self Certification / Self Attestation of following documents are required to be furnished by the beneficiaries:-

- i. Certificate of Religion.
- ii. Family Income Certificate
- iii. Mark sheet of previous year in case of Education Loans
- iv. Any other affidavit.
- v. Project Report:- Small project report regarding activity to be undertaken.

Completed  application  form  is  to  be  submitted  in  the  office  of  District  Minority  Welfare Officer/Head Office of SCAs.

## Disbursement of Loan

Information about sanction of loan is given to the applicant and they are advised for completion of following Loan Documentation formalities:-

- i. Opening of AADHAR/ Know Your Customer (KYC) linked savings bank account.
- ii. Guarantee as per prescribed norms.

On completion of above formalities, loan is released directly in the bank accounts of beneficiaries. The beneficiary is expected to purchase assets & start business activity within one month of receipt of loan.

## Repayment of Loan

- i. Repayment of loan in 5 years in monthly/quarterly basis.
- ii. Beneficiary  is  provided  repayment  schedule  &  details  of  Bank  Account  of  SCA  for repayment of loan.
- iii. Loan is to be repaid in notified Bank Account of SCA.
- iv. Beneficiary  to  obtain  No  Dues  Certificate/Loan  Closure  Certificate  on  completion  of repayment of loan
5. (b) The  details  of  fund  utilized  by  NMDFC  for  disbursing  to  States/UTs  from  the  financial year2017-18 to  2020-21 (upto 31.08.2020) is enclosed as Annexure-I.
6. (c) to (e):  There is an increase in number of beneficiaries under the schemes of NMDFC from 1,29,489 to 1,36,649,  during the period of 2017-18 to 2019-20. This shows that concessional loans are being taken by larger number of beneficiaries.

Government has taken numbers of steps to smoothen the procedure for availing concessional loan over a period of time that includes reduction of lead time between submission of application form by  the  applicant  and  sanction  of  loan  by  the  SCAs;  loans  are  being  released  directly  into  the  bank account  of beneficiaries through  RTGS;  Self-Declaration  /Self  Certification/Self Attestation of documents is accepted in case of Religion Certificate, Family Income, Residence Proof, Mark Sheet, etc; Insurance of beneficiary and their assets to safeguard against any untoward incident. Furthermore, the quantum of loan under Term Loan scheme has been increased from Rs.10.00 lacs to Rs.30.00 lacs while  under  Micro  Finance  scheme,  it  has  been  increased  from  Rs.50,000/-  to  Rs.1.50  lacs  per  Self Help Group member.  Under the 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 to Rs.30.00 lacs for courses abroad.

All these measures have strengthened and improved the working of NMDFC leading to more effective implementation of its schemes for the Minorities.

******

| ANNEXURE-I REFFERED TO IN PART (B) OF THE LOK SABHA UNSTARRED Q.NO. 2032 TO BE ANSWERED ON 22.09.2019                             | ANNEXURE-I REFFERED TO IN PART (B) OF THE LOK SABHA UNSTARRED Q.NO. 2032 TO BE ANSWERED ON 22.09.2019                             | ANNEXURE-I REFFERED TO IN PART (B) OF THE LOK SABHA UNSTARRED Q.NO. 2032 TO BE ANSWERED ON 22.09.2019                             |
|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| Statement showing fund utilized by NMDFC for disbursing to States/Uts from the financial year 2017-18 to 2020-21 (upto 31.8.2020) | Statement showing fund utilized by NMDFC for disbursing to States/Uts from the financial year 2017-18 to 2020-21 (upto 31.8.2020) | Statement showing fund utilized by NMDFC for disbursing to States/Uts from the financial year 2017-18 to 2020-21 (upto 31.8.2020) |
| Sr. No.                                                                                                                           | State                                                                                                                             | Fund Utilized ( Amount in Rupees Crore)                                                                                           |
| 1                                                                                                                                 | CHANDIGARH                                                                                                                        | 0.60                                                                                                                              |
| 2                                                                                                                                 | CHHATISGARH                                                                                                                       | 2.22                                                                                                                              |
| 3                                                                                                                                 | DELHI                                                                                                                             | 0.59                                                                                                                              |
| 4                                                                                                                                 | GUJARAT                                                                                                                           | 12.51                                                                                                                             |
| 5                                                                                                                                 | HARYANA                                                                                                                           | 16.48                                                                                                                             |
| 6                                                                                                                                 | HIMACHAL PRADESH                                                                                                                  | 15.50                                                                                                                             |
| 7                                                                                                                                 | JAMMU &KASHMIR                                                                                                                    | 206.46                                                                                                                            |
| 8                                                                                                                                 | JHARKHAND                                                                                                                         | 3.00                                                                                                                              |
| 9                                                                                                                                 | KARNATAKA                                                                                                                         | 5.60                                                                                                                              |
| 10                                                                                                                                | KERALA                                                                                                                            | 654.50                                                                                                                            |
| 11                                                                                                                                | MAHARASHTRA                                                                                                                       | 5.00                                                                                                                              |
| 12                                                                                                                                | MIZORAM                                                                                                                           | 5.76                                                                                                                              |
| 13                                                                                                                                | NAGALAND                                                                                                                          | 10.00                                                                                                                             |
| 14                                                                                                                                | PUNJAB                                                                                                                            | 2.00                                                                                                                              |
| 15                                                                                                                                | RAJASTHAN                                                                                                                         | 20.00                                                                                                                             |
| 16                                                                                                                                | TAMILNADU                                                                                                                         | 117.95                                                                                                                            |
| 17                                                                                                                                | TRIPURA                                                                                                                           | 40.31                                                                                                                             |
| 18                                                                                                                                | UTTRAKHAND                                                                                                                        | 1.90                                                                                                                              |
| 19                                                                                                                                | UTTARPRADESH                                                                                                                      | 10.00                                                                                                                             |
| 20                                                                                                                                | WEST BENGAL                                                                                                                       | 836.00                                                                                                                            |
|                                                                                                                                   | Grand Total                                                                                                                       | 1,966.38                                                                                                                          |