Lok Sabha Question No. 2840 (UNSTARRED), answered on 2025-08-06
Subject: National Minorities Development and Finance Corporation (NMDFC)
Ministry: MINORITY AFFAIRS
Asked by: Shri Mahendra Singh Solanky, Shri Basavaraj Bommai

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2840

ANSWERED ON 06.08.2025

## NATIONAL MINORITIES DEVELOPMENT AND FINANCE CORPORATION (NMDFC)

## 2840. SHRI MAHENDRA SINGH SOLANKY: SHRI BASAVARAJ BOMMAI:

Will the Minister of MINORITY AFFAIRS be pleased to state:

(a) the details of initiatives taken by National Minorities Development and Finance Corporation (NMDFC) to promote the socio-economic development of backward sections within minority communities;

(b)  the  key  functions  of  the  Minority  Loan  Accounting  Software  for  NMDFC  (MILAN)  in respect to digitizing loan accounting processes between  applicants, State Channelising Agencies (SCA) & NMDFC;

- (c)  the  details  on  the  disbursement  of  concessional  credit  by  NMDFC  and  the  number  of beneficiaries thereof;
- (d) whether NMDFC is currently implementing any schemes or financial support programmes in Dewas-Shajapur Constituency;
- (e) if so, the number of beneficiaries, types of schemes availed and total funds disbursed in the past three years;

(f) whether the Government has any plans to enhance outreach or simplify access to NMDFC benefits in semi-urban and rural areas of the constituency; and

(g)  the  measures  taken/being  taken  by  the  Government  to  raise  awareness  among  minority communities in Dewas-Shajapur regarding NMDFC's schemes and opportunities?

## ANSWER

## THE MINISTER OF MINORITY AFFAIRS

## (SHRI KIREN RIJIJU)

(a):  The  Government  implements  various  schemes  for  the  welfare  and  upliftment  of  every strata,  including  Minorities.  Ministry  of  Minority  Affairs  specifically  implements  various schemes  across  the  country  for  socio-economic  and  educational  empowerment  of  the  6 centrally  notified  minority  communities.  The    Public  Sector  Unit  under  the  Administrative control of Ministry of Minority Affairs implements various schemes to empower beneficiaries from  the  minority  communities  by  providing  concessional  loans  for  self-employment  and income  generation  ventures,  with  a  particular  preference  given  to  women  and  occupational group. The schemes of NMDFC are implemented through State Channelizing Agencies (SCAs) nominated  by  respective  State  Govt./  UT  Administration,  Punjab  Gramin  Bank  and  Canara Bank. The details of NMDFC schemes are enclosed as 'Annexure -A'.

(b):  The  Minority  Loan  Accounting  Software  for  NMDFC  (MILAN)  digitizes  the  loan accounting processes between beneficiaries, State Channelizing Agencies (SCAs), and NMDFC by streamlining  online  application  submissions,  sanctioning,  disbursement,  interest calculation, and MIS report generation, thereby ensuring transparency, accountability, and ease of  access  for  minority  beneficiaries  and  facilitating  paperless  operations  and  real-time  data management  across  all  stakeholders.  Applicants  can  apply  for  loans  online  through  this software,  following  which  the  application  reaches  the  concerned  SCA  for  online  processing. The SCA conducts scrutiny of received applications, verification of documents, sanctioning of loans, disbursement, interest calculation,  EMI  generation  (monthly and quarterly), and generating  various  MIS  reports.  MILAN  covers  multiple  NMDFC  schemes,  including  Term Loan,  Education  Loan,  Virasat  and  Micro-finance.  Additionally,  NMDFC  issues  demand notices,  Letters  of  Intent  (LOI),  and  annual  allocations  to  SCAs  through  MILAN,  receiving confirmations digitally from SCAs, thereby fully digitizing these processes.

(c): Since inception in 1994-95, NMDFC has disbursed concessional credit of Rs. 9632.32 crs. (upto 31.3.25) for covering over 25.86 lakh beneficiaries.

(d) to (g): In the State of Madhya Pradesh, M.P. Backward Classes & Minorities Finance and Development  Corporation  (MPBCMFDC)  is  the  State  Channelizing  Agency  (SCA)  of NMDFC.  However, the implementation of NMDFC schemes in the State of Madhya Pradesh through  MPBCMFDC  has  been  stalled  since  F.Y.  2005-06  as  the  State  Govt.  has  directed MPBCMFDC to implement State Govt. schemes only.

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ANNEXURE  REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO.  2840  FOR  ANSWER  ON  06.08.2025  REGARDING  'NATIONAL  MINORITIES DEVELOPMENT  AND  FINANCE  CORPORATION  (NMDFC)'  ASKED  BY  SHRI MAHENDRA SINGH SOLANKY: SHRI BASAVARAJ BOMMAI:

## Eligibility Condition

1. All  six  notified  minorities  communities  i.e  Muslims,  Christians,  Sikhs,  Buddhists,  Parsis  & Jains are eligible to avail benefit under NMDFC schemes.
2. The annual family income eligibility criterion under Credit Line-1 is upto Rs. 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 Line-2 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 Line-2 at an interest rate of 10% p.a. for male beneficiaries & 8% p.a for female beneficiaries.

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