Minority Benefits

Author(s): Babita Jain
Publisher: Shrut Samvardhan Samsthan

Page 99

The National Minorities Development & Finance Corporation
(NMDFC)
The National Minorities Development & Finance Corporation (NMDFC) was incorporated on 30th September 1994, with the objective of promoting economic activities amongst the backward sections of notified minorities. To achieve its objective, NMDFC is providing concessional finance for self-employment activities to eligible beneficiaries belonging to the minority communities, having a family income Rs. 81,000/-p.a. in Rural Areas and Rs. 1,03,000/- p.a. in Urban Areas. As a special initiative, a new annual family income eligibility of up to Rs. 6.00 lakh per annum has been introduced with effect from September, 2014. This category will get concessional credit at a high rate of interest. The authorised share capital of NMDFC which stood Rs.650 crore in 2004 now stands at Rs.1500 crore. Term Loan Scheme Details :
The scheme is for individual beneficiaries and is implemented through the SCAS. Under the Term Loan Scheme, projects costing up to Rs. 20.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of Rs. 18.00 lakh. The remaining cost of project is met by the SCA and the beneficiary. However the beneficiary has to contribute minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 6% p.a. on reducing balance method. For higher income group of up to 6.00 lakh, the rate of interest is 8% for males and 6% for females. Scheme Guidelines :
The steps for provision of term loan like collecting applications from the perspective beneficiaries , short-listing the applications through desk scrutiny and physical verification, interviewing the short-listed applicants by the Selection Committee ( as per the existing procedure), selection of beneficiaries, sanction of loan and disbursement of loan taken up through the campaign approach.
The National Minorities Development & Finance Corporation (NMDFC) was incorporated on 30th September 1994, as a company not for profit, under Section 25 0 the Companies Act 1956. It is a National Level Apex Body for the benefit of Minoritie as defined under the National Commission for Minorities Act 1992.
The prime mandate of NMDFC is to provide concessional finance to the Minoritie for self employment/ income generation activities. As per the National Commission fo Minorities Act, 1992, the notified Minorities are Muslims, Christians, Sikhs, Buddhists & Parsis. Subscquently, Jain community was also added into the list of notified Minorit Communities in January 2014. Under NMDFC programe, preference is given to Artisan & Women
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Minority Redhao