Parliament Question: Strengthening Credit Access through NMDFC

GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 4126 ANSWERED ON 12.08.2026 STRENGTHENING CREDIT ACCESS THROUGH NMDFC

4126. SHRI BALABHADRA MAJHI:

SHRI ANUP SANJAY DHOTRE:

DR. NISHIKANT DUBEY:

Will the Minister of MINORITY AFFAIRS be pleased to state:

(a) the details of the financial assistance disbursed and the number of beneficiaries covered under the National Minorities Development and Finance Corporation (NMDFC) during 2025–26 and 2026–27, State-wise and category-wise including Nabarangpur Lok Sabha Constituency of Odisha and Akola district of Maharashtra;

(b) the steps taken by the Government to expand access to concessional credit for minority beneficiaries through Term Loan and Micro Finance schemes in the country, State-wise including Nabarangpur Lok Sabha Constituency of Odisha and Akola district of Maharashtra;

(c) whether any initiative has been taken to strengthen partnerships with State Channelising Agencies, banks and other financial institutions to improve the loan delivery mechanism and if so, the details thereof;

(d) the steps taken by the Government to promote entrepreneurship, self-employment and livelihood opportunities through financial assistance supported by NMDFC during the last three years, year-wise, particularly in Nabarangpur Lok Sabha Constituency of Odisha and Akola district of Maharashtra; and

(e) whether the Government proposes to further enhance the outreach of NMDFC schemes and simplify access to financial assistance for eligible beneficiaries, particularly in Nabarangpur Lok Sabha Constituency and Akola district of Maharashtra and if so, the details thereof? ANSWER THE MINISTER OF MINORITY AFFAIRS (SHRI KIREN RIJIJU)

(a): The National Minorities Development & Finance Corporation (NMDFC), a Central Public Sector Enterprise under the Ministry of Minority Affairs, implements concessional credit schemes for self-employment and income-generating activities of eligible beneficiariesbelonging to notified minority communities, namely Muslims, Christians, Sikhs, Buddhists, Parsis and Jains through State Channelizing Agencies (SCAs) nominated by respective State Govt./ UT Administration and select banks. The details of the financial assistance disbursed and the number of beneficiaries covered under NMDFC schemes during 2025–26 and 2026–27, State-wise and Scheme-wise, are enclosed at Annexure-A (i) & Annexure-A (ii).

Further, Govt. of Odisha had nominated Orissa Backward Classes Finance & Development Cooperative Corporation (OBCFDCC) as the State Channelising Agency of NMDFC.

Implementation of NMDFC scheme in Odisha was stalled due to accumulation of overdues.

After settlement of overdues in July 2025, the State Government has decided to implement only state scheme. However, under the refinance mode, 05 beneficiaries in Odisha were financed through Canara Bank/Union Bank, with a total disbursement of ₹5.02 lakh during 2025-26.

Accordingly, so far as the Nabarangpur Lok Sabha Constituency of Odisha is concerned, no financial assistance has been disbursed under NMDFC schemes during the said period.

In the State of Maharashtra, NMDFC schemes are being implemented through the Maulana Azad Alpsankhyak Aarthik Vikas Nigam (MAAAVN), the designated State Channelising Agency

(SCA). The details of financial assistance disbursed and the number of beneficiaries covered in Akola district during 2025–26 and 2026–27 are enclosed at Annexure-B.

(b) & (c): The government has taken several measures to expand concessional credit access for minority beneficiaries under NMDFC’s Term Loan and Micro Finance Schemes and to enhance

the loan delivery mechanism: i. NMDFC introduced a new income bracket under Credit Line-2 for households earning up to Rs. 8 lakh annually, broadening scheme coverage. ii. In 2024, the family income eligibility for Credit Line-1 was raised to Rs. 3 lakh per annum uniformly across rural and urban areas, up from the previous Rs. 98, SHG member; Education Loan Scheme from Rs. 10 lakh to Rs. 20 lakh for domestic courses and Rs. 15 lakh to Rs. 30 lakh for overseas courses. 000 (rural) and Rs. 1.2 lakh (urban) limits.

iii. Loan limits have been increased: Term Loan Scheme from Rs. 10 lakh to Rs. 30 lakh; Micro Finance Scheme from Rs. 50,000 to Rs. 1.5 lakh per iv. Differential interest rates are now offered under Credit Line-2 based on economic background, with interest concessions of up to 2% for women under Term Loan and Micro Finance Schemes, and 3% under the Education Loan Scheme.

v. NMDFC partnered with Public Sector Banks (Canara Bank, Indian Bank, Union Bank of India) and Regional Rural Bank (Punjab Gramin Bank) to operate in States/UTs where State Channelising Agencies (SCAs) are ineffective or non-functional, ensuring wider and continuous access.

vi. The Ministry provides Grant-in-Aid via NMDFC to strengthen SCAs' infrastructure and capacity, improve loan recovery, and promote awareness camps for eligible beneficiaries. vii. Aadhaar-linked, KYC-compliant bank accounts are used for direct loan disbursement, ensuring transparency, timely delivery, and reduced intermediaries.

viii. Mandatory insurance covers beneficiaries and their financed assets to safeguard against unforeseen risks.ix. Simplified loan application process now accepts self-attested documents for residence, religion, income, and education, aligning with the "Minimum Government, Maximum Governance" approach to facilitate easier access.

These steps collectively enhance inclusivity, ease of access, and financial security for minority beneficiaries under NMDFC schemes.

(d): NMDFC promotes entrepreneurship, self-employment and livelihood opportunities among the notified minority communities by providing concessional financial assistance under its Term Loan and Micro Finance Schemes through State Channelising Agencies (SCAs) and other implementing agencies.

The year-wise details of incremental financial assistance disbursed and beneficiaries covered

during the last three years are as under:

Financial Year Amount Disbursed (Rs. crore) Beneficiaries Covered 2023–24 765.45 1,84,863 2024–25 860.43 2,00,279 2025–26 900.11 2,07,006 So far as the Nabarangpur Lok Sabha Constituency of Odisha is concerned, no financial assistance has been disbursed under NMDFC schemes, as the Government of Odisha is implementing only State schemes. However, under the refinance mode, Canara Bank and Union Bank financed 05 beneficiaries in Odisha, with a total disbursement of ₹5.02 lakh during 2025–

26.

As far as Akola district of Maharashtra is concerned, the details of financial assistance disbursed and beneficiaries covered under NMDFC schemes are enclosed at Annexure-B.

(e): NMDFC has implemented the following key measures to expand the reach and simplify

access to its financial assistance schemes:

(i) Increased income eligibility criteria and raised loan limits across schemes.

(ii) Introduced concessional interest rates, with special concessions for women beneficiaries.

(iii) Partnered with Public Sector Banks (PSBs) and Regional Rural Banks (RRBs) to operate where State Channelising Agencies (SCAs) are inactive.

(iv) Provided Grant-in-Aid to strengthen SCAs’ infrastructure and capacity, improve scheme implementation and loan recovery, and support awareness programs.

(v) Enabled Aadhaar-linked, KYC-compliant direct loan disbursements to beneficiaries.

(vi) Simplified the application process by accepting self-attested documents. ****Annexure-A (i) ANNEXURE REFERRED TO IN POINT (A) OF REPLY TO LOK SABHA UNSTARRED QUESTION NO. 4126 TO BE ANSWERED ON 12.08.2026 ASKED BY SHRI BALABHADRA MAJHI, SHRI ANUP SANJAY DHOTRE AND DR. NISHIKANT DUBEY REGARDING “STRENGTHENING CREDIT ACCESS THROUGH NMDFC”.

Disbursement during 2025-26 Amt. in Rs. Crore S State/UT Term Loan Beneficiaries Micro Beneficiaries Total Total No. Disbursement Finance Disbursement Beneficiaries Disbursement 1 Chandigarh ₹ 0.03 2 – – ₹ 0.03 2 2 Goa ₹ 0.14 9 – – ₹ 0.14 9 3 Haryana ₹ 3.84 257 – – ₹ 3.84 257 4 Himachal ₹ 7.76 517 – – ₹ 7.76 517 Pradesh 5 Jammu & ₹ 31.13 2,075 – – ₹ 31.13 2,075 Kashmir 6 Kerala ₹ 202.40 13,493 ₹ 118.75 47,500 ₹ 321.15 60,993 7 Ladakh ₹ 4.18 279 – – ₹ 4.18 279 8 Maharashtra ₹ 15.25 1,017 – – ₹ 15.25 1,017 9 Meghalaya ₹ 0.45 30 – – ₹ 0.45 30 10 Mizoram ₹ 2.50 166 – – ₹ 2.50 166 11 Punjab ₹ 13.19 904 – – ₹ 13.19 904 12 Tamil Nadu ₹ 26.25 1,750 ₹ 41.25 16,500 ₹ 67.50 18,250 13 Tripura ₹ 0.60 40 – – ₹ 0.60 40 14 West ₹ 113.65 7,576 ₹ 276.25 1,10,500 ₹ 389.90 1,18,076 Bengal 15 Indian Bank – – ₹ 9.06 1,255 ₹ 9.06 1,255 (PAN India) 16 Union Bank ₹ 9.00 281 – – ₹ 9.00 281 of India (PAN India) 17 Canara ₹ 24.43 2,855 – – ₹ 24.43 2,855 Bank (PAN India) Grand Total ₹ 454.80 31,251 ₹ 445.31 1,75,755 ₹ 900.11 2,07,006Annexure-A (ii) ANNEXURE REFERRED TO IN POINT (A) OF REPLY TO LOK SABHA UNSTARRED QUESTION NO. 4126 TO BE ANSWERED ON 12.08.2026 ASKED BY SHRI BALABHADRA MAJHI, SHRI ANUP SANJAY DHOTRE AND DR. NISHIKANT DUBEY REGARDING “STRENGTHENING CREDIT ACCESS THROUGH NMDFC”.

Disbursement during 2026-27 Amt. in Rs. Crore S. State/UT Term Loan Beneficiaries Micro Beneficiaries Total Total No Disburseme Finance Disbursement Beneficiaries nt Disbursement 1 Goa ₹ 0.09 5 – – ₹ 0.09 5 2 Haryana ₹ 2.32 155 – – ₹ 2.32 155 3 Himachal ₹ 2.00 122 – – ₹ 2.00 122 Pradesh 4 Kerala – – ₹ 55.00 18,929 ₹ 55.00 18,929 5 Maharasht ₹ 14.75 899 – – ₹ 14.75 899 ra 6 Punjab ₹ 2.00 133 – – ₹ 2.00 133 7 Rajasthan ₹ 3.00 183 – – ₹ 3.00 183 8 Tripura ₹ 2.89 176 – – ₹ 2.89 176 9 West ₹ 90.00 6,000 ₹ 44.00 17,600 ₹ 134.00 23,600 Bengal Grand Total ₹ 117.05 7,673 ₹ 99.00 36,529 ₹ 216.05 44,202Annexure-B ANNEXURE REFERRED TO IN POINT (A) & (D) OF REPLY TO LOK SABHA UNSTARRED QUESTION NO. 4126 TO BE ANSWERED ON 12.08.2026 ASKED BY SHRI BALABHADRA MAJHI, SHRI ANUP SANJAY DHOTRE AND DR. NISHIKANT DUBEY REGARDING “STRENGTHENING CREDIT ACCESS THROUGH NMDFC”.

Disbursement under the NMDFC Loan Scheme from 2024-25 to 2026-27 in Akola District (As on 30/06/2026) (Rs. in Lakh) Name of the Scheme S. Term Loan Micro Finance No. of Amt.

Distt. Year No. Beneficiary Disbursed No. of Amount No. of Amount Benef. Disbursed Benef. Disbursed 2024- 1 36 93.9 5 0 0 93.9 25 Akola 2025- 2 14 37.15 9 0 0 37.15 District 26 2026- 3 3 8.00 0 0 0 8.00 27 Total 53 139.05 14 0 0 139.05 ****