Lok Sabha Question No. 4261 (UNSTARRED), answered on 2025-03-26
Subject: Loan Schemes under National Minorities Development & Finance Corporation
Ministry: MINORITY AFFAIRS
Asked by: Dr. Byreddy Shabari, Shri G Lakshminarayana

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO- 4261

ANSWERED ON 26/03/2025

## LOAN SCHEMES UNDER NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION

## 4261 DR. BYREDDY SHABARI SHRI G LAKSHMINARAYANA

Will the Minister of MINORITY AFFAIRS be pleased to state:

(a) the details of various loan schemes offered by National Minorities Development and Finance Corporation (NMDFC) including eligibility criteria and funding structure;

(b) the  details  of  the  number  of  beneficiaries  and  the  total  amount  of  loans  disbursed under  NMDFC  schemes  during  the  last  five  years,  State  and  district-wise  particularly  for Andhra Pradesh;

(c) whether NMDFC operates through State Channelizing Agencies (SCAs) or any other financial institutions and if so, the details thereof;

(d) the details of interest rates applicable to different NMDFC loan schemes and whether any interest subvention or subsidy is provided to beneficiaries and if so, the details thereof; and

(e) the  measures  taken  by  the  Government  to  ensure  the  accessibility  of  NMDFC schemes to the intended beneficiaries, particularly in rural and economically weaker areas?

## ANSWER

## THE MINISTER OF MINORITY AFFAIRS

## (SHRI KIREN RIJIJU)

(a): The  details  regarding  the  schemes  of  the  National  Minorities  Development  and Finance  Corporation  (NMDFC),  including  eligibility  criteria  and  funding  structure,  are presented in 'Annexure-A'.

(b): The  state-wise  details  of  concessional  credit  disbursed  and  beneficiaries  covered under  NMDFC  schemes  during  the  financial  years  2019-20  to  2023-24  are  available  in Annexure-B. Similarly,  district-wise  data  for  the  state  of  Andhra  Pradesh  during  the  same period is provided in Annexure-C.

(c): The  schemes  of  the  National  Minorities  Development  and  Finance  Corporation (NMDFC)  are  executed  through  State  Channelizing  Agencies  (SCAs)  designated  by  the respective State Governments or UT Administrations. Additionally, Canara Bank and Punjab

Gramin  Bank  are  implementing  NMDFC  schemes  on  a  refinance  basis.  Furthermore, NMDFC entered into a Memorandum of Understanding (MoU) with Indian Bank and Union Bank of India in July 2024 for the implementation of these schemes.

(d): Loaning under the NMDFC scheme is carried out at a concessional rate of interest. The  details  of  interest  rates  applicable  to  different  NMDFC  loan  schemes  is  given  at Annexure-A. However, there is no provision for interest subvention or subsidy under these schemes.

(e): To  enhance  the  accessibility  of  NMDFC  schemes,  the  organization  of  Loan  Melas cum Awareness Camps has been made an integral part of the NMDFC loaning program. State Channelizing  Agencies  (SCAs)  of  NMDFC  organise  Loan  Melas  cum  Awareness  Camps annually  in  minority-concentrated  areas,  including  rural  and  economically  weaker  regions. During  these  camps,  awareness  is  created  about  NMDFC  schemes,  loans  are  disbursed  to shortlisted  beneficiaries,  and  loan  applications  are  distributed  to  participants.  Interested individuals are assisted in completing their applications, and duly filled forms are collected for  further  processing.  Success  stories  of  beneficiaries  are  shared  to  inspire  participants  to utilize  concessional  credit  for  their  economic  development.  Participants  are  sensitized  on proper utilization of loans and the importance of timely repayments.

NMDFC  actively  engages  with  the  public  through  social  media  platforms  such  as  X, Facebook, YouTube, Instagram, and LinkedIn to generate awareness about its schemes.

Additionally,  to  ensure  that  the  schemes  reach  the  intended  beneficiaries,  NMDFC  has revised  the  annual  family  income  limits  under  both  Credit  Line  1  and  Credit  Line  2  as follows:

1. The annual family income limit under Credit Line 1 has been enhanced from ₹98,000 in rural areas and ₹1,20,000 in urban areas to ₹3.00 lakh per annum for both rural and urban areas.
2. The annual family income limit under Credit Line 2 has been increased from ₹6.00 lakh per annum to ₹8.00 lakh per annum.

*****

Annexure referred to in reply to part (a) of LokSabha Admitted Question No. 4261 for answer on 26/03/2025 regarding Loan Schemes under National Minorities Development & Finance Corporation.

## Eligibility Condition

1. Muslims, Christians, Sikhs, Buddhists, Parsis& Jains notified as National Minorities by the Central Government under the National Minorities Commission Act, 1992 are eligible to avail benefit under NMDFC schemes.
2. The annual family income eligibility criterion under Credit Line-1 is uptoRs. 3.00 lacs p.a. for both rural & 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.

## Concessional Credit Schemes of NMDFC

1. Term Loan :-    Assistance under this scheme is available for any commercially viable & technically  feasible  venture.  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 Line2 at an interest rate of 8% p.a. for male beneficiaries & 6% p.a for female beneficiaries.

Education Loan :-  Education loan scheme is part of term loan scheme. Education Loan is provided for pursuing technical and professional courses with maximum course duration of 5 years. 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.

Virasat Scheme :-  This  scheme  is  also  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.

2. Micro Finance :-Under Micro-finance scheme, micro-credit is extended to the members of Self  Help  Groups  (SHGs),  especially  the  women  from  Minority  communities  scattered  in remote villages & urban slums, who are not able to take advantage of the formal banking credit. The scheme requires that the beneficiaries are organized into SHGs and get into habit of  thrift  &  credit,  however  small.  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 Line2 at an interest rate of 10% p.a. for male beneficiaries & 8% p.a for female beneficiaries.

Credit Line-wise other parameters & funding structure of NMDFC schemes is as follows:

## A. Credit Line 1

|   Sr. | Parameters                                   | Term Loan   | Education Loan                                                                                | Micro Finance                            | Virasat            |
|-------|----------------------------------------------|-------------|-----------------------------------------------------------------------------------------------|------------------------------------------|--------------------|
|     1 | Max. Loan Amount (Rs. In Lakh)               | 20          | 20 (I n India for upto5 years duration courses) 30 ( Courses Abroadfor upto 5 years duration) | 1 per member of SHG 20 for a group of 20 | 10                 |
|     2 | Rate of Interest for beneficiaries (% p.a)   | 6           | 3                                                                                             | 7                                        | 5 (male) 4 (women) |
|     3 | Rate of Interest by SCA/Bank to NMDFC( %p.a) | 3           | 1                                                                                             | 1                                        | 3 (male) 2 (women) |
|     4 | Moratorium period for the Beneficiaries      | 6 Months    | 6 mths after course completion or getting job, whichever is earlier                           | 3 months                                 | 6 months           |
|     5 | Repayment period for beneficiaries           | 5 Years     | 5 years                                                                                       | 3 year                                   | 5 years            |
|     6 | Means of Financing NMDFC: SCA/Bank: Benef.   | 90 : 5 : 5  | 90 : 5 : 5                                                                                    | 90 : 5 : 5                               | 90 : 5 : 5         |

## B. Credit  Line 2

|   S.No. | Parameters                                           | Term Loan          | Education Loan                                                                                | Micro Finance                               | Virasat            |
|---------|------------------------------------------------------|--------------------|-----------------------------------------------------------------------------------------------|---------------------------------------------|--------------------|
|       1 | Max. Loan Amount (Rs. In Lakh)                       | 30                 | 20 (I n India for upto5 years duration courses) 30 ( Courses Abroadfor upto 5 years duration) | 1.50 per member of SHG 30 for a group of 20 | 10                 |
|       2 | Rate of Interest for beneficiaries (% p.a)           | 8 (male) 6 (women) | 8 (male) 5 (women)                                                                            | 10 (male) 8 (women )                        | 6 (male) 5 (women) |
|       3 | Rate of Interest payable by SCA/Bank to NMDFC(% p.a) | 5 (male) 3 (women) | 2                                                                                             | 4 (male) 2 (women)                          | 4 (male) 3 (women) |
|       4 | Moratorium period for the Beneficiaries              | 6 months           | 6 mths after course completion or getting a job, whichever is earlier                         | 3 months                                    | 6 months           |
|       5 | Repayment period for beneficiaries                   | 5 years            | 5 years                                                                                       | 3 year                                      | 5 years            |
|       6 | Means of Financing NMDFC: SCA/Bank: Benef.           | 90 : 5 : 5         | 90 : 5 : 5                                                                                    | 90 : 5 : 5                                  | 90 : 5 : 5         |

Annexure referred to in reply to part (b) of LokSabha Admitted Question No. 4261 for answer on 26/03/2025 regarding Loan Schemes under National Minorities Development & Finance Corporation.

State/UT-wise  details  of  concessional  credit  disbursed  &  beneficiaries  covered  under NMDFC Schemes during F.Y. 2019-20 to F.Y. 2023-24.

| Sl. No.   | STATE/UT          | Amt. (incrs.)   | No. of Beneficiaries   |
|-----------|-------------------|-----------------|------------------------|
| 1         | ANDAMAN &NICOBAR  | 0.03            | 3                      |
| 2         | ANDHRA PRADESH    | 9.85            | 3192                   |
| 3         | ARUNACHAL PRADESH | 0.52            | 23                     |
| 4         | ASSAM             | 2.79            | 959                    |
| 5         | BIHAR             | 1.41            | 177                    |
| 6         | CHANDIGARH        | 0.50            | 33                     |
| 7         | DELHI             | 0.60            | 40                     |
| 8         | GOA               | 1.62            | 104                    |
| 9         | GUJARAT           | 14.43           | 956                    |
| 10        | HARYANA           | 22.17           | 1874                   |
| 11        | HIMACHAL PRADESH  | 50.79           | 3387                   |
| 12        | JAMMU &KASHMIR    | 198.77          | 14873                  |
| 13        | JHARKHAND         | 6.55            | 123                    |
| 14        | KARNATAKA         | 3.81            | 456                    |
| 15        | KERALA            | 1345.42         | 283088                 |
| 16        | LADAKH            | 0.02            | 1                      |
| 17        | LAKSHADWEEP       | 0.27            | 41                     |
| 18        | MADHYA PRADESH    | 0.19            | 9                      |
| 19        | MAHARASHTRA       | 31.03           | 2395                   |
| 20        | MANIPUR           | 0.48            | 121                    |
| 21        | MEGHALAYA         | 1.63            | 170                    |
| 22        | MIZORAM           | 13.43           | 876                    |
| 23        | NAGALAND          | 3.03            | 1205                   |
| 24        | ODISHA            | 0.89            | 243                    |
| 25        | PUDUCHERRY        | 0.02            | 1                      |
| 26        | PUNJAB            | 3.78            | 119                    |
| 27        | RAJASTHAN         | 16.23           | 1470                   |
| 28        | SIKKIM            | 1.00            | 66                     |
| 29        | TAMILNADU         | 253.94          | 66667                  |
| 30        | TELANGANA         | 7.86            | 873                    |
| 31        | TRIPURA           | 18.32           | 1222                   |
| 32        | UTTAR PRADESH     | 34.58           | 3067                   |
| 33        | UTTRAKHAND        | 1.59            | 118                    |
| 34        | WEST BENGAL       | 1552.82         | 448493                 |
|           | Grand Total       | 3600.21         |                        |
|           |                   |                 | 836444                 |

Annexure referred to in reply to part (c) of LokSabha Admitted Question No. 4261 for answer on 26/03/2025 regarding Loan Schemes under National Minorities Development & Finance Corporation.

District-wise  details  of  concessional  credit  disbursed  &  beneficiaries  financed  in  the state of Andhra Pradesh during F.Y. 2019-20 to F.Y. 2023-24

| Sl. No.     | DISTRICT                    |   Amt. (in lakhs) |   Benef. |
|-------------|-----------------------------|-------------------|----------|
| 1           | ANAKAPALLI                  |              1.81 |        3 |
| 2           | ANANTAPUR                   |            147.66 |      541 |
| 3           | ANANTHAPURAMU               |              9.1  |        5 |
| 4           | ANNAMAYYA                   |              3    |        5 |
| 5           | BAPATLA                     |             26.44 |       26 |
| 6           | CHITTOOR                    |             85.3  |      115 |
| 7           | EAST GODAVARI               |             44.75 |      150 |
| 8           | ELURU                       |              7.62 |        7 |
| 9           | GUNTUR                      |             94.49 |      181 |
| 10          | KRISHNA                     |             98.37 |      104 |
| 11          | KURNOOL                     |            171.88 |      991 |
| 12          | NANDYAL                     |              6.76 |        6 |
| 13          | NELLORE                     |             33.51 |      305 |
| 14          | NTR                         |             12.35 |       11 |
| 15          | PALNADU                     |              3.7  |        7 |
| 16          | PRAKASAM                    |             93.3  |      247 |
| 17          | SRI POTTI SRIRAMULU NELLORE |             14.9  |       11 |
| 18          | SRI SATHYA SAI              |              8.05 |        8 |
| 19          | SRIKAKULAM                  |             19.52 |       19 |
| 20          | TIRUPATI                    |              2.2  |        2 |
| 21          | VISAKHAPATNAM               |             26.13 |       38 |
| 22          | VIZIANAGARAM                |              8.02 |       10 |
| 23          | WEST GODAVARI               |             11.68 |       16 |
| 24          | Y.S.R.                      |             54.72 |      384 |
| Grand Total | Grand Total                 |            985.25 |     3192 |