Micro Finance Scheme of NMDFC
₹1–1.5 lakh SHG microfinance · 7–10% interest · minority communities India
This NMDFC scheme provides low-interest loans to women from minority communities who are members of Self Help Groups (SHGs) and lack access to regular bank credit. Loans up to ₹1 lakh are available at 7% interest (Credit Line-1) and up to ₹1.5 lakh at 10% (Credit Line-2), with a 2% concession for women. Contact your State Channelizing Agency (SCA) or Canara Bank/Punjab Grameen Bank to apply.
About This Scheme
This NMDFC scheme provides low-interest loans to women from minority communities who are members of Self Help Groups (SHGs) and lack access to regular bank credit. Loans up to ₹1 lakh are available at 7% interest (Credit Line-1) and up to ₹1.5 lakh at 10% (Credit Line-2), with a 2% concession for women. Contact your State Channelizing Agency (SCA) or Canara Bank/Punjab Grameen Bank to apply.
Full official description
Under this Scheme of NMDFC, credit is extended to the members of the Self Help Groups (SHGs), predominantly comprising of the minority women scattered in remote villages and urban slums, who are not able to take advantage of the formal banking credit. Under the scheme, an amount of Rs. 1 lacs under credit Line-1 & upto Rs. 1.5 lacs under Credit Line-2 is extended to each member of SHG at interest rate of 7% & 10% respectively. Concession of 2% is extended to women beneficiaries under Credit Line-2.
Benefits
- Loan up to ₹1,00,000 per SHG member at 7% interest (Credit Line-1)
- Loan up to ₹1,50,000 per SHG member at 10% interest (Credit Line-2)
- Additional 2% interest concession for women beneficiaries under Credit Line-2
- Helps minority women in rural and urban slum areas access formal credit for livelihood activities
💡 Why Startups Should Care
SHG-based lending distributes risk across the group while giving each member individual access to capital — for minority community women especially, this collective structure often eases both application approval and social accountability for repayment.
Who Can Apply (Eligibility)
- Must be a member of a Self Help Group (SHG) or Thrift and Credit Group (TCG)
- At least 75% of SHG members must belong to six notified minority communities (Muslims, Christians, Sikhs, Buddhists, Parsis, Jains); remaining up to 25% may be SC/ST/OBC/PwD
- Annual family income must not exceed ₹3 lakh (Credit Line-1) or ₹8 lakh (Credit Line-2)
- SHG must have at least 6 months of active thrift and credit activity
- Must not be a defaulter under any other government loan scheme
- Loan must be used for income-generating activities such as trade, handicrafts, food processing, or services
Exclusions
- Not available for families with annual income over ₹3 lakh under Credit Line 1, outside the six notified minority communities
How to Apply
- Contact your State Channelizing Agency (SCA list at nmdfc.org/SCA).
- Form or join a registered Self Help Group with minority community members.
- Submit group resolution authorizing the loan.
- Provide member list with Aadhaar numbers and minority certificates.
- On approval, the loan is disbursed to the SHG through the SCA.
Frequently Asked Questions
Who can benefit from the Micro-Finance Scheme?
The scheme benefits members of Self Help Groups (SHGs), primarily minority women, who are engaged in small trade or income-generating activities and have limited access to formal banking systems.
How much loan can a member or group avail under this scheme?
Under Credit Line–1, each member can avail up to Rs. 1.00 lakh, and up to Rs. 20.00 lakh per SHG group (20 members).
Under Credit Line–2, each member can avail up to Rs. 1.50 lakh, and up to Rs. 30.00 lakh per group (20 members).
What are the interest rates and repayment period under this scheme?
Under Credit Line–1, the rate is 7% per annum.
Under Credit Line–2, the rate is 10% for male beneficiaries and 8% for female beneficiaries.
The repayment period is three years, with a moratorium of three months.
What are the eligibility conditions for SHGs under the scheme?
At least 75% of SHG members must belong to minority communities. The remaining 25% may belong to other weaker sections (SC/ST/OBC/Persons with Disabilities). SHGs must have maintained savings and credit activities for at least six months before availing the loan.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Group resolution authorizing loan
- List of group members with minority status and Aadhaar numbers
- Photographs of all members
- Minority certificate