Schemes of National Minorities Development and Finance Corporation
The schemes of National Minority Development Finance Corporation (NMDFC) are being implemented for the socio-economic development of the ‘backward sections’ amongst the notified minorities through the State Channelising Agencies (SCAs) nominated by the respective State Governments/UT Administration.
For availing assistance under NMDFC schemes, the annual family income eligibility criterion under Credit Line-1 is Rs.98,000 for rural areas & Rs.1.20 lacs for urban areas. Higher annual family income eligibility criterion of upto Rs.6.00 lacs has also been introduced as Credit Line-2, for increasing coverage of beneficiaries under NMDFC schemes.
Following schemes are being implemented by NMDFC:-
Concessional Credit Schemes
1. Term Loan:- 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 of 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.
2. Micro Finance:- 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 of 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. The micro-finance scheme is primarily aimed at extending concessional credit to women beneficiaries. The scheme is implemented through SCAs & also through established NGOs.
3. Education Loan:- The Educational Loan of upto Rs.20.00 lacs for courses in India & Rs.30 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. Education Loan is provided for pursuing technical and professional courses with maximum course duration of 5 years. The scheme is implemented through SCAs.
4. Mahila Samridhi Yojana:- Skill development training is imparted to group of women in women friendly trades. Training period is of maximum 6(six) months with training & raw material cost of upto Rs.1,500 per women while stipend @ Rs.1,000 is available for each women. During the period of training, the women are formed into Self Help Group, followed by infusion of micro-credit maximum upto Rs.1.00 lacs per member for the purpose of using the skill developed during the training, for income generation activities.
As part of its developmental mandate, NMDFC also implements promotional schemes like Vocational Training & Marketing Support for the benefit of its target groups. Women beneficiaries are given preference. Detail is as follows:-
- Vocational Training Scheme:-NMDFC has realigned its Vocational Training Scheme with the common norms prescribed by the Ministry of Skill Development & Entrepreneurship (MSDE) viz., “Kaushal Se Kushalta”. Under this scheme, skill development training programs are organized as per common norms. Training programs of 200 to 250 hrs duration are organized at prescribed hourly cost. Stipend of Rs.1,000 per candidate per month and the cost of certification of the trained candidates is borne by NMDFC. There is placement guarantee of minimum 70% candidates trained under the scheme. This promotional scheme is implemented through State Channelising Agencies of NMDFC
2. Marketing Assistance Scheme:-The Marketing Assistance Scheme is meant for individual crafts persons, beneficiaries of NMDFC as well as SHGs & is implemented through the SCAs. The scheme envisages to promote sale & marketing of their products at remunerative prices through participation /organizing exhibitions at State/District level.
NMDFC utilizes fund allocated by the Central Govt. in its equity alongwith the repayments received from State Channelising Agencies (SCAs) for disbursement to respective SCAs. The detail of fund allocated by the Central Govt. in equity of NMDFC & fund disbursed by NMDFC to SCAs during the last three years and current financial year 2018-19 is given in following table:-
Amount in Rs/Crores
|Year||Allocation by Ministry for Contribution in Equity of NMDFC||Funds Disbursed for utilization by SCAs/States|
(as on 28.01.2019)
So far as NMDFC is concerned, no such reference has been received. In order to cut down on waiting time for sanction of loan for the applicant, NMDFC has given full authority to the SCAs, for sanction & disbursement of loan. Further, the SCAs have also been advised to reduce the lead time, between submission of application form by the applicant to sanction of loan by the SCA and release of loan directly through Real Time Gross Settlement (RTGS) in the bank account, immediately after completion of disbursement formalities by the identified beneficiary.
Following steps have been introduced to strengthen the functioning of NMDFC for effective implementation of its schemes:-
- Providing Grant-In-Aid assistance by the Ministry of Minority Affairs for strengthening the infrastructure & operational capability of State Channelising Agencies (SCAs), for effective implementation of NMDFC schemes.
- Introduction of new Annual Family Income eligibility criterion of up to Rs.6.00 lacs per annum for greater coverage of persons from the targeted minority communities.
- 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.0.50 lac 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.
- Self Declaration/Self Certification/Self Attestation of documents in case of Religion Certificate, Family Income, Residence Proof, Mark Sheet, etc.
- Transfer of loan directly in Bank Account of Beneficiary through National Electronic Funds Transfer (NEFT)/ Real Time Gross Settlement (RTGS) Insurance of beneficiary and their assets to safeguard against any untoward incident.
The State/SCA-wise detail of fund drawn/utilised by respective SCAs during last 3 years and current financial year 2018-19 is as under:
This information was given by Union Minister for Minority Affairs Shri Mukhtar Abbas Naqvi in a written reply to a question in Rajya Sabha today.