The National Minorities Development & Finance Corporation (NMDFC)
Under the Micro Financing Scheme, micro-credit is extended to the members of the Self Help Groups (SHGs), specially the minority women scattered in remote villages and urban slums, who are not able to take advantage of the formal banking credit as well as the NMDFC programmes, through its SCAs. NMDFC is implementing the scheme on the pattern of Grameen Bank of Bangladesh and Rashtriya Mahila Kosh (RMK). The scheme ‘requires that the beneficiaries are organized into Self Help Groups (SHGs) and get into habit of thrift & credit, however small. The scheme envisages micro-credit to the poorest among the poor through NGOs of proven track-record and their network of Self Help Groups (SHGs). It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries.
Scheme Benefits & Highlights
- Under this scheme, small loans up to a maximum of INR 1 lacs per member of SHG are provided through the NGOs / SHGs. The scheme is implemented through the SCAs as well as the NGOs.
- Rate of Interest for Beneficiaries/SHGs 7% pa
- The repayment period under the scheme is maximum of 36 months.
- Rate of Interest for NGOs by NMDFC directly- 1% pa
- Repayment period for the SCAs/NGOs- 4 years / 3 years
- Utilization Period for the SCAs /NGOs- 3 Months/ 1 Month
- Means of Financing NMDFC: SCA : Beneficiary Contribution- 90: 5 : 5
Applicable for Self Help Groups/NGOsRequired Documents and Process
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.
The beneficiaries need to contact their respective SCA (the details of the state wise SCAs are mentioned in the document below) and the SCA will link the loan account to the Aadhar Card (though other biometric identification proof wil also work).
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Rate of Interest on Loan for Beneficiaries/SHGs – 7% p.a