Lok Sabha Question No. 3148 (UNSTARRED), answered on 2025-03-19
Subject: NMDFC
Ministry: MINORITY AFFAIRS
Asked by: Shri Arun Bharti

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3148

ANSWERED ON 19.03.2025

## NMDFC

## 3148.  SHRI  ARUN BHARTI:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a) the details of the plan, if any, to extend over Rs. 1,000 crore in credit to more than 2.5 lakh beneficiaries under National Minorities Development and Finance Corporation (NMDFC)  by  the  Government  during  2024-25  along  with  the  status  of  such extension;
- (b) the details of criteria used by the Government to select beneficiaries and mechanism put in place to monitor the disbursement process; and
- (c) the  details  of  steps  taken  by  the  Government  to  enhance  the  implementation  of  the NMDFC schemes?

## ANSWER

## THE MINISTER OF MINORITY AFFAIRS

## (SHIR KIREN RIJIJU)

(a): The disbursement target of National Minorities Development and Finance Corporation (NMDFC) for the financial year 2024-25 is Rs. 850.00 crore and NMDFC has disbursed Rs. 752.23 crore to over 1,74,148 beneficiaries till 10 th March 2025.

(b): NMDFC has delegated the  authority  to  its  State  Channelizing  Agencies  (SCAs)  to sanction,  disburse  &  recover  loan  from  beneficiaries.  The  beneficiaries  are  selected  as  per following eligibility criteria for release of concessional credit:

- i. Person should belong to notified National Minority viz., Buddhists, Christians, Jains, Muslims, Parsis and Sikhs as per National Commission for Minorities Act, 1992.
- ii. Person having annual family income of upto Rs. 3.00 lakhs under Credit Line 1 and upto Rs. 8.00 lakhs under Credit Line 2.

The  applicants  are  required  to  submit  the  necessary  documents  for  meeting  the  above eligibility  criteria.  To  ensure  that  credit  support  reaches  genuine  and  deserving  minority beneficiaries,  the  SCAs  have  adopted  a  multi-level  screening  mechanism  for  document verification,  background  checks  &  site  inspections  before  sanction  of  loan.  Further,  the sanctioned  amount  is  released  through  Direct  Benefit  Transfer  (DBT)  into  the  KYC authenticated beneficiary account.

- (c): In  order  to  enhance  the  implementation  of  NMDFC  schemes  across  the  nation, following steps have been taken by NMDFC:
- i. Enhancing the annual family income limit under Credit Line 1 from Rs. 98,000/- in rural areas & Rs. 1,20,000/- in urban areas to Rs. 3.00 lakh per annum in both rural & urban areas.
- ii. Introduction  of  new Annual  Family  Income  eligibility  criterion  of  up  to  Rs.8.00 lakh  per  annum  for  greater  coverage  of  persons  from  the  targeted  minority communities.
- iii. Quantum  of  loan  under  Term  Loan  scheme  increased  from  Rs.10.00  lakh  to Rs.30.00  lakh  while  under  Micro  Finance  scheme,  it  has  been  increased  from Rs.50,000/- to Rs.1.50 lakh per Self Help Group member.  Under Education Loan scheme,  the  quantum  of  loan  has  been  increased  from  Rs.5.00  lakh  to  Rs.20.00 lakh  for  domestic  courses  &  from  Rs.10.00  lakh  to  Rs.30.00  lakh  for  courses abroad.
- iv. Introduction of Virasat Scheme  to  meet  the  credit requirement  of  Artisans belonging to target group.
- v. Self-Declaration/Self  Certification/Self Attestation  of  documents  is  introduced  in case of Religion Certificate, Family Income, Residence Proof, Mark Sheet, etc.
- vi. Transfer of loan directly in Bank Account of Beneficiary through NEFT/RTGS.
- vii. Insurance  of  beneficiary  and  their  assets  to  safeguard  against  any  untoward incident.
- viii. Signing of MoU with Canara Bank, Union Bank of India, Indian Bank & Punjab Gramin Bank to increase the outreach of NMDFC schemes in the States/UTs where SCAs are non-functional.
- ix. NMDFC has also developed MILAN Software to streamline and digitize the loan and accounting processes between applicants, State Channelizing Agencies (SCAs) and NMDFC.

*****