Term Loan Scheme of NMDFC
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%)
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
Other than Six Notified minority communities having annual family income of more than Rs. 3.00 Lakhs under credit line 1 and of more than Rs.8.00 Lakhs under credit line 2.
How to Apply
NMDFC implements its schemes & programs through State Channelizing Agencies (SCA list: www.nmdfc.org/SCA ) nominated by the respective State Governments & Banking Partners (Presently through Canara Bank & Punjab Grameen Bank).
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 (as prescribed by SCA/Bank).
- Recent passport-size photographs of the applicant and co-applicant (if any).
- Proof of Minority Status: Self-declaration or certificate from competent authority.
- Income Certificate issued by a competent authority (Tehsildar/SDM).
- Residence Proof: Aadhaar card, Voter ID, Ration Card, or Utility Bill.
- Identity Proof: Aadhaar card/PAN card.
- Project Report or Business Plan (detailing purpose, cost, and financial viability).
- Bank Account Proof: Cancelled cheque or first page of passbook (Aadhaar linked).
- Quotation/Estimate of machinery, equipment, or raw materials (as applicable).
- No Dues Certificate from other financial institutions (if required).
- Affidavit/Self-declaration stating non-availment of loan from other government schemes.
- Insurance document (if available at time of submission; otherwise post-sanction).