The National Minorities Development & Finance Corporation (NMDFC) through state channelizing Agencies (SCAs) implements this scheme for individuals.

Scheme highlights

  • Projects with costing of up to INR 30 lakh are considered
  • NMDFC provides up to 90% of the project cost as loan (maximum up to INR 27 lakh); the balance must be paid by the beneficiary and the SCA 
  • Beneficiary contribution must be at least 5% of the total cost
  • Interest rate is levied at 8% per annum and 6% per annum for male and female beneficiaries, respectively
  • Interest rate applicable for SCAs is 3% per annum
  • Moratorium period of up to six months
  • Beneficiary repayment period five years
  • SCAs repayment duration of eight years
  • Utilization must be within three months

Eligibility criteria

  • Any individual who meets the NMDFC criteria is eligible to apply for the scheme
  • The beneficiary must belong to one of the six defined minority communities
  • The annual income of a family should be less than INR 6 lakh
  • Income eligibility as per the Creamy Layer criterion as defined by the Indian Government for the other backward class (OBC) category

The SCAs nominated by the state or union territory government implement this scheme. The channelizing agency has an office at the district level and applicants may submit their forms at this office. The registration fees for male applicants are 8% per year and for female applicants is 5% per annum.

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