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Self Employement Lending Schemes- Credit Line 2-Term Loan Scheme

The National Minorities Development & Finance Corporation (NMDFC)

This scheme is for individual beneficiaries and is implemented through the SCAs.

Scheme Benefits & Highlights
  • Under the Term Loan Scheme, projects costing up to INR30 lacs are considered for financing. 
  • NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of INR 27 lacs. The remaining cost of project is met by the SCA and the beneficiary. 
  • The beneficiary has to contribute minimum of 5% of the project cost. 
  • The rate of interest charged from the beneficiary is 8% p.a. on reducing balance method for male beneficiaries & 6% p.a for women beneficiaries.
  • Rate of Interest for SCAs- 3% pa
  • Moratorium period- 6 months
  • Repayrnent  period for beneficiaries- 5 years
  • Repayment period for the SCAs- 8 years
  • Means of Financing NMDFC: SCA:Benef. Contribution- 90 : 5 : 5
  • Utilization Period- 3 Months
All Individuals meeting the NDMFC Requirements can apply.
Target groups for NMDFC with regard to direct benefits will be persons belonging to minority communities and under the Credit line 2, concessional credit is provided to the section of Minority population with annual family income of up to Rs.6.00 lacs, defined on the basis of “Creamy Layer” criterion of OBC by Government of India.  
For more details click here
Required Documents

Respective State Channelizing Agencies (SCAs) nominated by respective State/UT Government implement this scheme. Generally each Channelizing Agency has an office at district level where the beneficiary is required to make formal application.

To know more, click here.

Registration Fees

8% pa.for male beneficiaries 5% pa. for women beneficiaries

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