Executive Summary:
The Ministry of Minority Affairs addresses questions regarding the National Minorities Development and Finance Corporation (NMDFC). It details NMDFC's initiatives to promote socioeconomic development among backward sections of minority communities, the functions of the Minority Loan Accounting Software (MILAN), and the disbursement of concessional credit. The response also addresses the implementation of schemes in Dewas-Shajapur Constituency and efforts to raise awareness about NMDFC's schemes.
Key Points / Main Content:
NMDFC Initiatives and Schemes:
* NMDFC provides concessional loans for self-employment and income generation ventures, prioritizing women and occupational groups.
* Schemes are implemented through State Channelizing Agencies (SCAs), Punjab Gramin Bank, and Canara Bank.
* Eligible minority communities: Muslims, Christians, Sikhs, Buddhists, Parsis, and Jains.
* Credit Line 1: Annual family income up to Rs. 3.00 lakhs p.a.
* Credit Line 2: Annual family income up to Rs. 8.00 lakhs p.a.
Concessional Credit Schemes:
* Term Loan: Up to Rs. 20.00 Lakhs (Credit Line 1) or Rs. 30.00 Lakhs (Credit Line 2) for commercially viable ventures. Interest rates vary.
* Education Loan: Part of the Term Loan scheme, up to Rs. 20.00 Lakhs (India) or Rs. 30.00 Lakhs (Abroad) for technical and professional courses. Interest rates vary.
* Virasat Scheme: Up to Rs. 10.00 Lakhs for artisans, with varying interest rates based on gender and credit line.
* Micro Finance: Loans up to Rs. 1.00 Lakh per SHG member (Credit Line 1) or Rs. 1.50 Lakhs (Credit Line 2), with varying interest rates.
Minority Loan Accounting Software (MILAN):
* Digitizes loan accounting between beneficiaries, SCAs, and NMDFC.
* Streamlines online application submissions, sanctioning, disbursement, and interest calculation.
* Generates MIS reports, ensuring transparency and accountability.
* Covers multiple NMDFC schemes, including Term Loan, Education Loan, Virasat, and Microfinance.
* Digitizes demand notices, Letters of Intent (LOI), and annual allocations to SCAs.
Disbursement Details:
* Since 1994-95, NMDFC has disbursed Rs. 9632.32 crores, benefiting over 25.86 lakh beneficiaries (as of 31.03.2025).
Dewas-Shajapur Constituency:
* NMDFC schemes are not currently implemented in Madhya Pradesh, including Dewas-Shajapur, as the State Govt. has directed MPBCMFDC to implement State Govt. schemes only since F.Y. 2005-06.
Impact Analysis
Minority Communities:
* Impact: Access to concessional loans for self-employment, education, and traditional crafts, potentially improving socioeconomic status.
* Action Required: Apply for loans through the online MILAN portal or through designated SCAs when schemes are implemented in their state.
State Channelizing Agencies (SCAs):
* Impact: Responsible for implementing and monitoring NMDFC schemes at the state level. Use MILAN for processing applications, disbursing loans, and generating reports.
* Action Required: Process loan applications through MILAN, ensure proper documentation, and disburse funds according to NMDFC guidelines (where applicable).
NMDFC:
* Impact: Oversees the implementation of schemes and provides financial assistance through SCAs.
* Action Required: Maintain and update MILAN, allocate funds to SCAs, and monitor the progress of schemes.
Government of India (Ministry of Minority Affairs):
* Impact: Responsible for the overall welfare and upliftment of minority communities.
* Action Required: Monitor the effectiveness of NMDFC schemes and make necessary adjustments to improve outreach and accessibility.
Key Entities Referenced
National Minorities Development and Finance Corporation: A Public Sector Unit under the Ministry of Minority Affairs, responsible for providing concessional loans to backward sections within minority communities.
Minority Loan Accounting Software for NMDFC MILAN: Software that digitizes loan accounting processes between applicants, State Channelising Agencies SCAs, and NMDFC.
Ministry of Minority Affairs: The government ministry responsible for the welfare and upliftment of minority communities.
State Channelising Agencies: Agencies nominated by State Governments/UT Administrations to implement NMDFC schemes.
Madhya Pradesh: A state in India where the implementation of NMDFC schemes has been stalled.
M.P. Backward Classes Minorities Finance and Development Corporation: The State Channelizing Agency SCA of NMDFC in Madhya Pradesh.
Term Loan: A concessional credit scheme of NMDFC providing financial assistance for commercially viable ventures.
Self Help Groups: Groups to whom microcredit is extended to the members especially the women from Minority communities scattered in remote villages urban slums
GOVERNMENT OF INDIA
MINISTRY OF MINORITY AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2840
ANSWERED ON 06.08.2025
NATIONAL MINORITIES DEVELOPMENT AND FINANCE CORPORATION
(NMDFC)
2840. SHRI MAHENDRA SINGH SOLANKY:
SHRI BASAVARAJ BOMMAI:
Will the Minister of MINORITY AFFAIRS be pleased to state:
(a) the details of initiatives taken by National Minorities Development and Finance Corporation
(NMDFC) to promote the socio-economic development of backward sections within minority
communities;
(b) the key functions of the Minority Loan Accounting Software for NMDFC (MILAN) in
respect to digitizing loan accounting processes between applicants, State Channelising
Agencies (SCA) & NMDFC;
(c) the details on the disbursement of concessional credit by NMDFC and the number of
beneficiaries thereof;
(d) whether NMDFC is currently implementing any schemes or financial support programmes
in Dewas–Shajapur Constituency;
(e) if so, the number of beneficiaries, types of schemes availed and total funds disbursed in the
past three years;
(f) whether the Government has any plans to enhance outreach or simplify access to NMDFC
benefits in semi-urban and rural areas of the constituency; and
(g) the measures taken/being taken by the Government to raise awareness among minority
communities in Dewas–Shajapur regarding NMDFC’s schemes and opportunities?
ANSWER
THE MINISTER OF MINORITY AFFAIRS
(SHRI KIREN RIJIJU)
(a): The Government implements various schemes for the welfare and upliftment of every
strata, including Minorities. Ministry of Minority Affairs specifically implements various
schemes across the country for socio-economic and educational empowerment of the 6
centrally notified minority communities. The Public Sector Unit under the Administrative
control of Ministry of Minority Affairs implements various schemes to empower beneficiaries
from the minority communities by providing concessional loans for self-employment and
income generation ventures, with a particular preference given to women and occupational
group. The schemes of NMDFC are implemented through State Channelizing Agencies (SCAs)
nominated by respective State Govt./ UT Administration, Punjab Gramin Bank and Canara
Bank. The details of NMDFC schemes are enclosed as “Annexure -A”.
(b): The Minority Loan Accounting Software for NMDFC (MILAN) digitizes the loan
accounting processes between beneficiaries, State Channelizing Agencies (SCAs), and
NMDFC by streamlining online application submissions, sanctioning, disbursement, interest
calculation, and MIS report generation, thereby ensuring transparency, accountability, and ease
of access for minority beneficiaries and facilitating paperless operations and real-time datamanagement across all stakeholders. Applicants can apply for loans online through this
software, following which the application reaches the concerned SCA for online processing.
The SCA conducts scrutiny of received applications, verification of documents, sanctioning of
loans, disbursement, interest calculation, EMI generation (monthly and quarterly), and
generating various MIS reports. MILAN covers multiple NMDFC schemes, including Term
Loan, Education Loan, Virasat and Micro-finance. Additionally, NMDFC issues demand
notices, Letters of Intent (LOI), and annual allocations to SCAs through MILAN, receiving
confirmations digitally from SCAs, thereby fully digitizing these processes.
(c): Since inception in 1994-95, NMDFC has disbursed concessional credit of Rs. 9632.32 crs.
(upto 31.3.25) for covering over 25.86 lakh beneficiaries.
(d) to (g): In the State of Madhya Pradesh, M.P. Backward Classes & Minorities Finance and
Development Corporation (MPBCMFDC) is the State Channelizing Agency (SCA) of
NMDFC. However, the implementation of NMDFC schemes in the State of Madhya Pradesh
through MPBCMFDC has been stalled since F.Y. 2005-06 as the State Govt. has directed
MPBCMFDC to implement State Govt. schemes only.
*****Annexure- A
ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION
NO. 2840 FOR ANSWER ON 06.08.2025 REGARDING “NATIONAL MINORITIES
DEVELOPMENT AND FINANCE CORPORATION (NMDFC)” ASKED BY SHRI
MAHENDRA SINGH SOLANKY: SHRI BASAVARAJ BOMMAI:
Eligibility Condition
1. All six notified minorities communities i.e Muslims, Christians, Sikhs, Buddhists, Parsis &
Jains are eligible to avail benefit under NMDFC schemes.
2. The annual family income eligibility criterion under Credit Line-1 is upto Rs. 3.00 lacs p.a. for
both rural & urban areas. Under Credit Line -2, persons with higher annual family income of
upto Rs.8.00 lacs p.a. can avail higher quantum of financial assistance at a higher rate of
interest.
Concessional Credit Schemes of NMDFC
1. Term Loan:- Assistance under this scheme is available for any commercially viable &
technically feasible venture. Maximum Loan of up to Rs.20.00 Lacs per beneficiary is available
under Credit Line-1 at an interest rate of 6% p.a.
Higher loan of maximum up to Rs.30.00 Lacs per beneficiary is available under Credit Line-2
at an interest rate of 8% p.a. for male beneficiaries & 6% p.a for female beneficiaries.
Education Loan:- Education loan scheme is part of term loan scheme. Education Loan is
provided for pursuing technical and professional courses with maximum course duration of 5
years. The Educational Loan of upto Rs.20.00 lacs for courses in India & Rs.30.00 lacs for
courses abroad is available at an interest rate of 3% p.a. under Credit Line-1 while interest @ of
8% p.a. is charged from male beneficiaries & 5% p.a from female beneficiaries under Credit
Line-2.
Virasat Scheme:- This scheme is also part of the Term Loan scheme and is implemented with
the objective to meet credit requirements of the Artisans, both in terms of Working Capital and
Fixed Capital for purchase of equipment/tools/machineries. Maximum loan of upto Rs.10.00
Lacs can be availed under the scheme at simple interest of 5% p.a. for Male Artisan & at 4%
p.a. for Female Artisan under Credit Line-1 and at simple interest of 6% p.a. for Male Artisan
& at 5% p.a. for Female Artisan under Credit Line-2.
2. Micro Finance:-Under Micro-finance scheme, micro-credit is extended to the members of
Self Help Groups (SHGs), especially the women from Minority communities scattered in
remote villages & urban slums, who are not able to take advantage of the formal banking credit.
The scheme requires that the beneficiaries are organized into SHGs and get into habit of thrift
& credit, however small. Maximum loan upto Rs.1.00 lac per SHG member is available under
Credit Line -1 at an interest rate of 7% p.a.
Higher loan of maximum upto Rs.1.50 lacs per SHG member is available under Credit Line-2
at an interest rate of 10% p.a. for male beneficiaries & 8% p.a for female beneficiaries.
*****