MINISTER OF STATE (INDEPENDENT CHARGE) FOR THE MINISTRY OF MINORIT AFFAIRS (SALMAN KHLRSHID)
(a) and (b): National Minorities Development and Finance Corporation (NMDFC) extends loans
to persons belonging to minorities living below double the poverty line for undertaking self
employment and income generating activities. The schemes of NMDFC are being implemented through
36 State Channelising Agencies (SCAs) spread across 28 States and UTs and through a network of
over 240 Non-Governmental Organizations (NGOs). NMDFC provides term loans to individuals through
its SCAs which are nominated by the respective State/UT Governments. Term loan up to Rs. 5.00
lakh is provided at an interest rate of 6% per annum. Besides, it provides micro-credit to the
minorities organized into Self Help Groups (SHGs) through SCAs and NGOs. An amount of Rs. 25,000
per member of SHG is provided at an interest rate of 5% per annum. NMDFC also extends Educational
Loan upto Rs. 2.5 lakh at the interest rate of 3% per annum, through its SCAs for pursuing
technical and professional courses.
(c) and (d): NMDFC does not provide loans through State Governments. It channelizes funds
through the State Channelsing Agencies (SCAs) and Non-Governmental Organizations (NGOs) in the
respective States. State-wise disbursement of funds during last three years is at Annex.
(d): To further strengthen the corporation and suggest measures to increase the outreach
of NMDFC, a consultancy firm is studying the restructuring of NMDFC.
