Term Loan Scheme of NMDFC
₹20–30 lakh loan at 6–8% · minority communities · economic activities India
The NMDFC Term Loan Scheme provides concessional business loans to individuals from six minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, and Jain) to fund income-generating ventures. You can borrow up to ₹20 lakh at 6% per annum under Credit Line-1 or up to ₹30 lakh at 8% under Credit Line-2, with an additional 2% interest concession for women borrowers on Credit Line-2. Apply through your nearest State Channelizing Agency or partner bank (Canara Bank or Punjab Grameen Bank).
About This Scheme
The NMDFC Term Loan Scheme provides concessional business loans to individuals from six minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, and Jain) to fund income-generating ventures. You can borrow up to ₹20 lakh at 6% per annum under Credit Line-1 or up to ₹30 lakh at 8% under Credit Line-2, with an additional 2% interest concession for women borrowers on Credit Line-2. Apply through your nearest State Channelizing Agency or partner bank (Canara Bank or Punjab Grameen Bank).
Full official description
Under this scheme of NMDFC, credit is extended for financing economically viable income generation ventures. Loan of upto Rs. 20 lacs under Credit Line-1 and upto Rs. 30 lacs under Credit line -2 is extended to beneficiaries at 6% p.a. & 8% p.a. respectively. Further, concession of 2% is extended to women beneficiaries under Credit Line-2.
Benefits
- Up to ₹20 lakh loan at 6% p.a. under Credit Line-1 (for annual income up to ₹3 lakh)
- Up to ₹30 lakh loan at 8% p.a. under Credit Line-2 (for annual income up to ₹8 lakh)
- Women borrowers get 2% interest concession on Credit Line-2 (effective rate: 6%)
💡 Why Startups Should Care
The tiered structure — lower rate for smaller loans, higher ceiling for larger ones — gives minority entrepreneurs flexibility to match financing to their venture's actual capital needs, from small trade to more substantial business setup.
Who Can Apply (Eligibility)
- Must be an Indian citizen from one of six notified minority communities: Muslim, Christian, Sikh, Buddhist, Parsi, or Jain
- Annual family income must not exceed ₹3 lakh (Credit Line-1) or ₹8 lakh (Credit Line-2)
- Must be 18 years or older and capable of undertaking self-employment
- Must not have any outstanding defaults under any Central or State government financing scheme
- Project must be economically viable and technically feasible
- Must have a valid Aadhaar-linked bank account, residence proof, income certificate, and minority community certificate
- Women, youth, and occupational groups from minority communities get preference
Exclusions
- Not available for families with annual income over ₹3 lakh, outside the six notified minority communities
How to Apply
- Contact your State Channelizing Agency (SCA list at nmdfc.org/SCA).
- Fill in the loan application form as prescribed by your SCA/bank.
- Submit passport photos of applicant and co-applicant.
- Provide proof of minority status and business plan.
- On approval, the loan is disbursed through the SCA.
Frequently Asked Questions
Who can apply for the NMDFC Term Loan Scheme?
The Term Loan Scheme is open to individuals belonging to one of the six notified minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, and Jain). The applicant must have an annual family income of up to Rs. 3.00 lakh under Credit Line–1 and up to Rs. 8.00 lakh under Credit Line–2.
What is the maximum amount of loan available and what are the interest rates?
Under Credit Line–1, loans up to Rs. 20.00 lakh are available at 6% interest per annum.
Under Credit Line–2, loans up to Rs. 30.00 lakh are available at 8% interest per annum for male beneficiaries and 6% for female beneficiaries.
What is the repayment period and moratorium for the Term Loan?
A moratorium period of six months is provided, after which the beneficiary must repay the loan within five years.
What kind of activities can be financed under the Term Loan Scheme?
Term loans can be availed for any viable income-generating project, including activities in agriculture & allied sectors, technical trades, small businesses, transport services, and traditional occupations.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Duly filled loan application form
- Recent passport-size photographs of applicant and co-applicant
- Proof of minority status