The National Minorities Development & Finance Corporation (NMDFC) is a government company established under Section 8 of the Companies Act, 2013. It operates under the administrative control of the Ministry of Minority Affairs, Government of India. The corporation aims to foster economic development among the “Backward Sections” of minority communities, including Muslims, Christians, Sikhs, Buddhists, Parsis, and Jains, with a particular focus on occupational groups and women.
NMDFC Schemes: Overview and Benefits
The National Minorities Development & Finance Corporation (NMDFC) offers credit-based schemes tailored to the economic needs of minority communities. Beneficiaries are categorized into two credit lines based on annual family income:
– **Credit Line-1:** For families with an annual income of up to ₹3.00 lakhs.
– **Credit Line-2:** For families with an annual income of up to ₹8.00 lakhs.
The schemes are implemented through State Channelizing Agencies (SCAs) nominated by state governments and banking partners.
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Key Schemes of NMDFC
1. **Term Loan Scheme**
Provides financial support for viable income-generating activities:
– **Loan Amount:** Up to ₹20 lakhs (Credit Line-1) and ₹30 lakhs (Credit Line-2).
– **Interest Rates:** 6% per annum (Credit Line-1) and 8% per annum (Credit Line-2).
– **Concession:** Women beneficiaries under Credit Line-2 receive a 2% interest reduction.
2. **Education Loan Scheme**
Supports job-oriented technical and professional courses (up to five years):
– **Loan Amount:** Up to ₹20 lakhs for domestic courses and ₹30 lakhs for overseas courses.
– **Interest Rates:** 3% per annum (Credit Line-1) and 8% per annum (Credit Line-2).
– **Concession:** Women beneficiaries under Credit Line-2 receive a 3% interest reduction.
3. **Micro-Finance Scheme**
Empowers members of Self-Help Groups (SHGs), primarily minority women in remote or underserved areas:
– **Loan Amount:** ₹1 lakh (Credit Line-1) and ₹1.5 lakhs (Credit Line-2) per SHG member.
– **Interest Rates:** 7% per annum (Credit Line-1) and 10% per annum (Credit Line-2).
– **Concession:** Women beneficiaries under Credit Line-2 receive a 2% interest reduction.
4. **Virasat Scheme**
A subset of the Term Loan Scheme, this supports artisans with capital for tools, equipment, and raw materials:
– **Loan Amount:** Up to ₹10 lakhs under both Credit Lines.
– **Interest Rates:** 5% per annum (Credit Line-1) and 6% per annum for male artisans (Credit Line-2).
– **Concession:** Female artisans receive a 1% interest reduction under both Credit Lines.
These schemes are designed to enhance economic opportunities, promote self-reliance, and support education and traditional crafts among minority communities.
