Virasat Loan Scheme of NMDFC
The NMDFC Virasat Loan Scheme offers low-interest loans of up to ₹10 lakh to traditional craftspeople and artisans from minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, and Jain) for buying tools, equipment, and raw materials. Interest rates are 5% under Credit Line-1 and 6% for male artisans under Credit Line-2, with a 1% concession for women artisans on both lines. Apply through your nearest State Channelizing Agency or partner bank (Canara Bank or Punjab Grameen Bank).
About This Scheme
The NMDFC Virasat Loan Scheme offers low-interest loans of up to ₹10 lakh to traditional craftspeople and artisans from minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, and Jain) for buying tools, equipment, and raw materials. Interest rates are 5% under Credit Line-1 and 6% for male artisans under Credit Line-2, with a 1% concession for women artisans on both lines. Apply through your nearest State Channelizing Agency or partner bank (Canara Bank or Punjab Grameen Bank).
Full official description
This scheme is part of the Term Loan scheme and is implemented with the objective to meet Working Capital and Fixed Capital for purchase of equipment/tools/machineries/raw material. Maximum loan of upto Rs.10.00 lacs can be availed under Credit Line-1 & 2. Simple interest of 5% p.a. is charged under Credit Line-1 and at 6% p.a. from Male Artisan under Credit line- 2. Concession of 1% is provided to Female Artisan under both the Credit Lines.
Benefits
- Up to ₹10 lakh loan at 5% p.a. under Credit Line-1 (income up to ₹3 lakh/year)
- Up to ₹10 lakh loan at 6% p.a. for male artisans under Credit Line-2 (income up to ₹8 lakh/year)
- Women artisans pay just 4% (CL-1) or 5% (CL-2) — 1% concession applied automatically
- Funds can be used for tools, equipment, raw materials, or working capital
Who Can Apply (Eligibility)
- Must be an Indian citizen from one of six 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 an artisan or craftsperson in a traditional occupation (handloom, handicraft, metalwork, pottery, leatherwork, embroidery, etc.)
- Must have basic skills or certification in the relevant craft, verified by a competent authority
- Must not currently be a beneficiary of a similar artisan financing scheme
- Must have a valid Aadhaar-linked bank account and minority community certificate
- Women artisans 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
What is the Virasat Scheme, and who can apply for it?
The Virasat Scheme supports artisans and craftspersons from minority communities by providing credit for working capital and fixed capital requirements, such as purchasing tools, machinery, and raw materials.
What is the maximum loan amount and interest rate under this scheme?
Under both Credit Lines, artisans can avail up to Rs. 10.00 lakh.
Under Credit Line–1, interest rates are 5% for male beneficiaries and 4% for female beneficiaries.
Under Credit Line–2, interest rates are 6% for male beneficiaries and 5% for female beneficiaries.
What is the repayment period and moratorium?
A six-month moratorium is allowed, followed by repayment over a period of five years.
What documents or proof of skill are required to apply?
Applicants must provide proof of artisan status, such as an Artisan ID Card issued by the Development Commissioner (Handicrafts/Handlooms), certificate from local craft societies, or evidence of traditional occupation.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Filled Application Form (individual artisan).
- Recent Photograph of the applicant.
- Proof of Minority Status (certificate or self-declaration).
- Income Certificate issued by competent authority.
- Proof of Residence: Aadhaar card, voter ID, ration card, or similar.
- Identity Proof: Aadhaar card/PAN card.
- Proof of Occupation/Skill: Artisan ID card from Development Commissioner (Handicrafts/Handlooms) or Certificate from local artisan cooperative/society/panchayat.
- Project Proposal or Requirement List (tools, machinery, raw materials, etc.).
- Quotation/Estimate from supplier(s).
- Bank Account Proof: Aadhaar-linked bank passbook.
- No Dues Certificate (if previously assisted).
- Affidavit/Self-declaration confirming non-benefit from other similar artisan loan schemes.