Lok Sabha Question No. 600 (UNSTARRED), answered on 2015-12-02
Subject: National Minority Development and Finance Corporation
Ministry: MINORITY AFFAIRS
Asked by: SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA

## MINISTRY OF MINORITY AFFAIRS LOK SABHA UNSTARRED QUESTION No.600 TO BE ANSWERED ON 02.12.2015

## National Minority Development and Finance Corporation

## 600. KUMARI SHOBHA KARANDLAJE:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a) the details of the Schemes of National Minority Development and Finance Corporation (NMDFC) and the procedure to avail concessional loans under these schemes;
- (b) whether  most  of  the  beneficiaries  are  not  in  a  position  to  avail  concessional  loans provided under these schemes due to complicated procedures; and
- (c) if so, the steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

- (a) National Minorities Development and Finance Corporation (NMDFC) provides concessional loansto minorities for self-employment and income generating activities through the State channelizing Agencies (SCAs) nominated by the respective State governments/ Union Territory (UT) Administration.

For availing assistance under NMDFC schemes, the annual family income eligibility criterion is Rs. 81,000 for rural areas and Rs. 1.03 lakh for urban areas (Credit Line-1). Higher annual household income eligibility  criterion  of upto  Rs.6.00  lakh has  also  been  introduced  (Credit Line-2) for increasing coverage of beneficiaries under NMDFC schemes.

The schemes implemented by NMDFC are as follows:

## A. Concessional Credit Schemes

1.  Term  Loan :-Maximum  Loan  of  up  to  Rs.20.00  Lakh  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 Lakh 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.
2. Micro Finance:Maximum loan upto Rs.1.00 Lakh 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 Lakh per SHG member is available under Credit Line-2 at an interest rate of 10% per  annum  for  male  beneficiaries  and  8%  per  annum  for  female  beneficiaries.  The  microfinance scheme is primarily aimed at extending concessional credit to women beneficiaries.
3.  Education  Loan :-  Under  Credit  line-1,  the  Educational  Loan  of  upto  Rs.15.00  Lakh  for courses within India and Rs.20 Lakh for courses abroad, is available at an interest rate of 3% per annum for pursuing technical and professional courses with maximum course duration of 5 years. Under Credit line-2, higher Educational Loan of upto Rs.20.00 Lakh for courses within India and Rs.30 Lakh for courses abroad, is available at an interest rate of 8% per annum for male candidates and at 5% per annum for female beneficiaries.
4. Mahila Samridhi Yojana:Skill development training is imparted to group of women in women  friendly  trades.  Training  period  is  of  maximum  6  months  with  training  and  raw material  cost  of  upto  Rs.1,500  per  women  and  stipend  @  Rs.1,000  per  women.  During  the period of training, the women are formed into Self Help Group, followed by infusion of microcredit maximum upto Rs.1.00 Lakh per member for the purpose of using the skill developed during the training, for income generation activities.

## B. Development Schemes:-

As  part  of  its  developmental  mandate,  NMDFC  also  implements  promotional  schemes  like Skill  Development  and  Marketing  support  for  the  benefit  of  its  target  groups  thereby, strengthening  its  economic  mandate,  as  well.  Women  beneficiaries  are  given  preference. Detailsare as follows:-

1.  Vocational  Training  Scheme:The  Vocational  Training  Scheme  of  NMDFC  aims  at imparting skills to the targeted individual beneficiaries leading to wage/self-employment. The scheme  is  implemented  through  the  SCAs  which  organize  need  based  skill  development training  with  the  help  of  local  Government  owned/recognized  training  institutes  in  trades having potential wage/self-employment. The cost of the training program is up to Rs.2000 per candidate per month for courses up to 6 months duration. Stipend @ Rs.1000 per month per trainees is also offered during the training. Under the scheme, the training institutes/implementing agencies are required to ensure employment of at least 80% trainees with at least 50% in the organized sector.
2. 2.Marketing Assistance Scheme:The Marketing Assistance Scheme is meant for individual crafts  persons,  beneficiaries  of  NMDFC  as  well  as  SHGs    and  is  implemented  through  the SCAs. The scheme envisages to promote sale and marketing of their products at remunerative prices through participation/organizing exhibitions at State/District level.

As regards procedure to avail  concessional  loans  under  NMDFC  schemes,  SCAs have been delegated  authority  for  sanction  and  disbursement  of  loan.  SCAs  adopt  procedure  as  per guidelines  issued  by  respective  State  Governments/  UT  Administration.  NMDFC  has  given broad  guidelines  to  the  SCAs  for  selection  of  beneficiaries  and  release  of  funds.  Further, Guarantee  norms  for  beneficiary  have  been  simplified.  No  guarantee  is  required  from beneficiaries  for  loans  upto  Rs.1.00  lakh.  Now  even  Income  Tax  payee,  employee  from PSU/bank, prominent person from the community, any public representative etc. can stand as guarantor.

- (b) No, Madam.

- (c) Does not arise.

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