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Central GovernmentVerified

Micro Finance Scheme of NMDFC

Ministry: Ministry Of Minority Affairs

Under the scheme, an amount of Rs. 1 lakh under credit Line-1 & upto Rs. 1.5 lakh under Credit Line-2 is extended to each member of SHG (belong to Minority communities) at interest rate of 7% & 10% respectively. Concession of 2% is extended to women beneficiaries under Credit Line-2.

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Source: myScheme.gov.in ↗Last verified: 5 Oct 2026·YojnaGuru is not affiliated with or endorsed by any government body

About This Scheme

Under this Scheme of NMDFC, credit is extended to the members of the Self Help Groups (SHGs), predominantly comprising of the minority women scattered in remote villages and urban slums, who are not able to take advantage of the formal banking credit. Under the scheme, an amount of ₹1,00,000/- under credit Line-1 & upto ₹1,50,000/- under Credit Line-2 is extended to each member of SHG at interest rate of 7% & 10% respectively. Concession of 2% is extended to women beneficiaries under Credit Line-2.

Benefits

  • Concessional Credit to the beneficiaries among minority communities.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.
  • •

    a) The scheme is implemented through Self Help Groups (SHGs) or Thrift and Credit Groups (TCGs) comprising members of minority communities.

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    b) At least 75% of the members of each SHG/TCG must belong to notified minority communities. The remaining up to 25% may belong to weaker sections, including Scheduled Castes, Scheduled Tribes, Other Backward Classes, or Persons with Disabilities.

  • •

    In exceptional cases, groups with minimum 60% minority members may also be considered.

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    c) The annual family income of each beneficiary must not exceed:

  • •

    Rs. 3.00 lakh under Credit Line–1.

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    Rs. 8.00 lakh under Credit Line–2.

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    d) The SHG should have a satisfactory record of thrift and credit activity for at least six months.

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    e) The beneficiaries should not be defaulters under any other loan scheme.

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    f) Loans shall be used for income-generating activities such as petty trade, handicrafts, food processing, and service enterprises.

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    g) Preference shall be given to women SHGs and groups operating in rural and minority-concentrated areas.

Required Documents

  • ✦
    Group Resolution authorizing loan availed under NMDFC scheme.
  • ✦
    List of Group Members with minority status and Aadhaar numbers.
  • ✦
    Photographs of all members.
  • ✦
    Minority Certificate/Self-declaration for each minority member.
  • ✦
    Income Certificate for each member issued by competent authority.
  • ✦
    Proof of Residence: Aadhaar card, voter ID, or ration card.
  • ✦
    Bank Account Proof: SHG group account (Aadhaar linked) and individual passbooks.
  • ✦
    Record of thrift and credit activity (for at least six months).
  • ✦
    Meeting Register, Savings Ledger, and Loan Ledger maintained by SHG.
  • ✦
    Business Activity Plan or list of proposed income-generating activities.
  • ✦
    Affidavit/Self-declaration that no other microfinance assistance is being received.

✦ Required ◦ Optional

How to Apply

IIn-person
  • 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).

Quick Info

Level
Central Government

Categories

Banking,Financial Services and Insurance

Data Sources