Lok Sabha Question No. 1826 (UNSTARRED), answered on 2025-12-10
Subject: Schemes under National Minorities Development and Finance Corporation
Ministry: MINORITY AFFAIRS
Asked by: Shri Khagen Murmu

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1826

ANSWERED ON 10.12.2025

## SCHEMES UNDER NATIONAL MINORITIES DEVELOPMENT AND FINANCE CORPORATION

## 1826 SHRI KHAGEN MURMU:

Will the Minister of MINORITY AFFAIRS be pleased to state:

(a)  the  details  of  all  schemes,  initiatives  and  programmes  undertaken  by  the  National Minorities  Development  and  Finance  Corporation  (NMDFC)  for  the  welfare  of  Minority Communities;

(b) the details of concessional loan disbursed by NMDFC during the financial year 2014-15 for the economic empowerment of Minority Communities, year-wise;

(c)  the  details  of  schemes  and  programmes  being  implemented  by  NMDFC  for  providing marketing opportunities to the Minority Artisans of the country; and

(d)  the  details  of  mechanisms put in place by NMDFC to monitor the implementation and ensure reach of their schemes/programmes to the intended beneficiaries?

## ANSWER

## THE MINISTER OF MINORITY AFFAIRS (SHRI KIREN RIJIJU)

(a):  National  Minorities  Development  &  Finance  Corporation  (NMDFC)  implements  its schemes for  socioeconomic development of  'backward sections'  among  the  (06)  notified minority communities by providing concessional loan for self-employment income generation ventures across the country. The schemes of NMDFC are implemented through State Channelizing Agencies (SCAs) nominated by respective State Govt./ UT Administration, Punjab Gramin Bank, Canara Bank and Union Bank. The details of NMDFC schemes are enclosed as 'Annexure -A'.

(b): The details of Concessional loan disbursed by NMDFC from Financial Year 2014-15 for the economic empowerment of Minority Communities, are enclosed at ' AnnexureB' .

(c):  The  National Minorities Development and Finance Corporation (NMDFC) implements marketing  scheme  for  providing  marketing  opportunities  to  minority  artisans  and  crafts persons across the country. The key features of marketing scheme for supporting artisans are as follows: -

Marketing Assistance Scheme This  is  a Promotional  Scheme implemented  by  NMDFC  through  its  State  Channelizing Agencies (SCAs). · Target  Group: The  scheme  is  designed  for individual  crafts  persons ,  beneficiaries  of NMDFC, and Self Help Groups (SHGs). · Objective: It envisages promoting the sale and marketing of their products at remunerative prices. · Method  of  Marketing: This  is  achieved  through exhibitions  organized  at  State  or District level .

(d): To  monitor  implementation  of  its  schemes,  NMDFC  regularly  conducts  'beneficiary verification' and 'impact assessment study' by engaging independent third -party organizations/agencies to assess the proper utilization & impact of NMDFC financing on the target  groups  across  the  country.  NMDFC  officials  also  visit  different  States/UTs  for beneficiary interaction. Further, the steps taken by NMDFC during last 10 Years & current year to ensure enhancing of outreach of NMDFC schemes to the intended beneficiaries are enclosed at ' AnnexureC' .

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Annexure referred to in reply to part (a) of Lok Sabha Unstarred Question No. 1826 to be answered on 10.12.2025 asked by H on'ble Member of Parliament SHRI KHAGEN MURMU regarding ' SCHEMES UNDER NATIONAL MINORITIES DEVELOPMENT AND 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 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, 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,upto Rs.10.00 Lacs can be availed under the scheme at simple interest of 5% p.a. for Male Artisan & 4% p.a. for Female Artisan under Credit Line-1 and at simple interest of 6% p.a. for Male Artisan & 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, 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.

## CREDIT  LINE-WISE  OTHER  PARAMETERS  &  FUNDING  STRUCTURE  OF NMDFC SCHEMES

## A. Credit Line 1

|   S. No. | Parameters                                      | Term Loan   | Education Loan                                                                                  | Micro Finance                            | Virasat            |
|----------|-------------------------------------------------|-------------|-------------------------------------------------------------------------------------------------|------------------------------------------|--------------------|
|        1 | Max. Loan Amount (Rs. In Lakh)                  | 20          | 20 (I n India for upto 5 years duration courses) 30 ( Courses Abroad for 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 months 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: Beneficiary | 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 upto 5 years duration courses) 30 ( Courses Abroad for 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 months 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: Beneficiary | 90 :5 : 5  | 90 :5 : 5                                                                 | 90 :5 : 5  | 90 :5 : 5  |

Annexure-B

Annexure referred to in reply to part (b) of Lok Sabha Unstarred Question No. 1826 to be answered on 10.12.2025 asked by H on'ble Member of Parliament SHRI KHAGEN MURMU regarding ' SCHEMES UNDER NATIONAL MINORITIES DEVELOPMENT AND FINANCE CORPORATION '

## CONCESSIONAL LOAN DISBURSED BY NMDFC FROM FINANCIAL YEAR 2014-15

Amt. Rs. in Crore

|   S. No. | Financial Year   |   Amount |
|----------|------------------|----------|
|        1 | 2014-2015        |   431.2  |
|        2 | 2015-2016        |   473.29 |
|        3 | 2016-2017        |   503.32 |
|        4 | 2017-2018        |   570.83 |
|        5 | 2018-2019        |   603.66 |
|        6 | 2019-2020        |   602.5  |
|        7 | 2020-2021        |   650.41 |
|        8 | 2021-2022        |   700    |
|        9 | 2022-2023        |   881.7  |
|       10 | 2023-2024        |   765.45 |
|       11 | 2024-2025        |   860.43 |

Annexure referred to in reply to part (d) of Lok Sabha Unstarred Question No. 1826 to be answered on 10.12.2025 asked by H on'ble Member of Parliament SHRI KHAGEN MURMU regarding ' SCHEMES UNDER NATIONAL MINORITIES DEVELOPMENT AND FINANCE CORPORATION '

## Details  of  steps  taken  by  NMDFC  during  last  10  Years  &  current  year  to  ensure enhancing of outreach of NMDFC schemes to the intended beneficiaries

- a. 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 lacs per annum in both rural & urban areas.
- b. Introduction of new Annual Family Income eligibility criterion of up to Rs.8.00 lacs per annum for greater coverage of persons from the targeted minority communities.
- c. Quantum of loan under Term Loan scheme increased from Rs.10.00 lacs to Rs.30.00 lacs  while  under  Micro  Finance  scheme,  it  has  been  increased  from  Rs.50,000/-  to Rs.1.50 lacs per SHG member.  Under Education Loan scheme, the quantum of loan has been increased from Rs.5.00 lacs to Rs.20.00 lacs for domestic courses & from Rs.10.00 lacs to Rs.30.00 lacs for courses abroad.
- d. Introduction of Virasat Scheme to meet the credit requirement of Artisans belonging to target group.
- e. Self Declaration/Self Certification/Self Attestation of documents is introduced in case of Religion Certificate, Family Income, Residence Proof, Mark Sheet, etc.
- f. Transfer of loan directly in Bank Account of Beneficiary through NEFT/RTGS.
- g. Insurance of beneficiary and their assets to safeguard against any untoward incident.
- h. 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.
- i. NMDFC has also developed MILAN Software to streamline and digitize the loan and accounting  processes  between  applicants,  State  Channelizing  Agencies  (SCAs)  and NMDFC.

Further,  to  enhance  awareness  about  NMDFC  schemes,  organizing  of  Loan  Melas cum Awareness camps have been made mandatory part of the loaning program of NMDFC. Each SCA has been allocated to organize at least 10 Loan Melas cum awareness camps every year in the minority concentrated areas including rural &   economically weaker areas. These Loan Melas cum awareness camps are being organized by the respective SCAs including at the time of disbursement of funds to the beneficiaries.

During such camps, besides creating awareness about schemes of NMDFC, loan is disbursed to shortlisted beneficiaries.  Loan applications are distributed to the participants & interested persons are helped to fill applications. Duly filled applications are received from the participants for further processing. Success stories of beneficiaries are also shared and the participants are motivated to avail concessional credit for their economic development. The participants are also sensitized to properly utilize loan and make timely repayments.

NMDFC also uses Social Media handles such as X, Facebook, You-tube, Instagram & Linkedin to generate awareness about its schemes.