Lok Sabha Question No. 238 (STARRED), answered on 2022-03-17
Subject: Role of NMDFC
Ministry: MINORITY AFFAIRS
Asked by: T. R. Paarivendhar

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA

## STARRED QUESTION NO - *238

ANSWERED ON - 17.03.2022

## ROLE OF NMDFC

- *238. DR. T. R. PAARIVENDHAR:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a) whether the National Minorities Development and Finance Corporation (NMDFC) is functioning exclusively for the welfare of the minorities across the country;
- (b)  if so, the details thereof;
- (c)  the role and responsibility of NMDFC along with the aims/purpose for setting up of the same; and
- (d) the number of beneficiaries under NMDFC during the last three years, minority community-wise in each State?

## ANSWER

THE MINISTER OF MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

- (a) to (d):  A statement is laid on the table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) to (d) OF LOK SABHA STARRED  QUESTION  NO.  *238  REGARDING  ROLE  OF  NMDFC  FOR ANSWERED ON 17.03.2022

(a)& (b) The National Minorities Development & Finance Corporation (NMDFC) was incorporated on 30 th  September, 1994 as a company Not for Profit, under Section 25 of the Companies Act, 1956, now under Section 8 of Companies Act, 2013.    It  is  functioning  across  the  country  for  the  welfare  of  the  notified National Minorities viz., Muslims, Christians, Sikhs, Buddhists, Jains &Parsis as per the National Commission for Minorities Act, 1992. NMDFC implements its  schemes  primarily  through  45  State  Channelizing  Agencies  (SCAs)  in  28 States & 8 Union Territories.

The  prime  mandate  of  NMDFC  is  to  provide  concessional  finance  to  the 'Backward Sections'  amongst  Notified  Minorities  for  self-employment  income generation activities.  The annual family income eligibility criteria for availing the  benefit  from  NMDFCunder  Credit  Line-1  is  upto  Rs.98,000  p.a.  for  rural areas & upto Rs.1.20 lacs p.a. for urban areas. Under Credit Line -2, persons with  higher  annual  family  income  of  upto  Rs.8.00  lacs  p.a.  can  avail  higher quantum  of  financial  assistance  at  a  higher  rate  of  interest.  The  following schemes are being implemented by NMDFC for welfare of the minorities:-

## 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%  per  annum  (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  Self  Help  Group 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.30.00 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.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% p.a. for Male Artisan & at 4% p.a. for Female Artisan under Credit Line-1 and at simple interest of 6% p.a. for Male Artisan & at 5% p.a. for Female Artisan under Credit Line-2.

## 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  the promotional schemes of NMDFC are as follows:-

1. 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  duration  maximum  upto  600 hrs  or  upto  6  months  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.
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.
3. MahilaSamridhiYojana :-Skill  development  training  is  imparted  to  group of  women  in  women  friendly  trades.  Training  period  is  of  maximum  6 months with training & raw material cost of upto Rs.1,500 per women and 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  micro-credit  of  upto  Rs.1.00  lacs  per  member  for  the  purpose  of  using the skill developed during the training for income generation activities.

(c):NMDFC  has  been  set-up  with  the  aim  &  purpose  to  extend  concessional credit  for  financing  Income  Generation  Activities  for  the  benefit  of  the  ' Backward  Sections ' amongst the targeted Minority Communities  with preference being given to the occupational groups & women.  The main objects to be pursued by the Company are:-

- i) To  promote  economic  and  developmental  activities  for  the  benefit  of 'backward sections' amongst  the minorities, preference being given to the occupational groups and women;
2. ii) To  promote  self-employment  and  other  ventures  for  the  benefits  of minorities.
3. iii) To  grant  loans  and  advances  at  such  rates  of  interest  as  may  be determined  from  time  to  time  in  accordance  with  the  guidelines  or schemes  prescribed  by  the  Central  Government  or  by  the  Reserve Bank of India.
4. iv) To  extend  loans  and  advances  to  the  eligible  members  belonging  to the minorities for pursuing general/professional/technical education or training at graduate and higher levels;
- v) To assist in the up gradation of technical and entrepreneurial skills of minorities for proper and efficient management of production units.
6. vi) To assist the Central & State/UT level organizations dealing with the development of the minorities by way of providing financial assistance or equity contribution and in obtaining commercial funding or by way of refinancing;
7. vii) To  work  as  an  apex  institution  for  coordinating  and  monitoring  the work  of  all  corporations/boards/other  bodies  set  up  by  the  state government/Union Territory Administrations for, or given the responsibility of assisting the minorities for their economic development; and
8. viii) To help in furthering the Government policies and programs for the development of minorities.

(d):  The  detail  of  beneficiaries  benefitted  through  NMDFC  during  the  last  3 years is enclosed as Annexure.

**********

## (Annexure)

## ANNEXURE REFFERRED IN REPLY TO PART (d) OF LOK SABHA STARRED QUESTION NO. *238 ANSWERED ON 17.03.2022 ASKED BY DR. T. R. PAARIVENDHAR REGARDING 'ROLE OF NMDFC'

Details of Community-wise & State-wise beneficiaries financed by NMDFC during the last three years.

| States/UTs       |   Muslim |   Christian |   Sikh |   Buddhist |   Parsi |   Jain |
|------------------|----------|-------------|--------|------------|---------|--------|
| CHANDIGARH       |       89 |           1 |     31 |          0 |       0 |      0 |
| CHHATISGARH      |       20 |           1 |      1 |          0 |       0 |      3 |
| DELHI            |       53 |           5 |      9 |          0 |       0 |      0 |
| GUJARAT          |      624 |           9 |     14 |          0 |       0 |     19 |
| HARYANA          |      797 |           4 |    271 |          1 |       0 |      5 |
| HIMACHAL PRADESH |      357 |           0 |     47 |          4 |       0 |      0 |
| JAMMU & KASHMIR  |     3465 |          24 |     90 |         64 |       0 |      2 |
| JHARKHAND        |      398 |          13 |      0 |          0 |       0 |      0 |
| KERALA           |    23885 |       64895 |      0 |          0 |       0 |      4 |
| MIZORAM          |        0 |         630 |      0 |          0 |       0 |      0 |
| NAGALAND         |        0 |        1231 |      0 |          0 |       0 |      0 |
| TAMILNADU        |    11487 |        9059 |      0 |          0 |       0 |     80 |
| TRIPURA          |       10 |           0 |      0 |          0 |       0 |      0 |
| UTTAR PRADESH    |      680 |           4 |     21 |          4 |       0 |      4 |
| UTTARAKHAND      |      125 |           2 |      2 |          0 |       0 |      2 |
| WEST BENGAL      |   340957 |        2622 |    963 |       2221 |       2 |      7 |