National Minorities Development and Finance Corporation (NMDFC) has launched the Micro Financing Scheme to provide concessional finance to the minorities for self-employment or income generation activities. Under this Micro Financing Scheme, assistance in the form of loan will be provided to the economically weaker sections of minorities communities for starting income generation activities. In this article, we look Micro Financing Scheme of NMDFC in detail.
Purpose of Loan
The micro-credit can be availed by the members of weaker sections amongst the Minorities organized into Self Help Groups (SHGs) for augmenting income generation activities. The activity can be undertaken by the individual member of the SHGs or by the group. The list of income-generating activities are given below:
Agriculture and allied activities
Artisan and traditional occupations, and
Transport and services sector
The eligibility criteria of an individual to apply for Micro Financing scheme under NMDFC are listed below:
The beneficiary should belong to the category of the minority community
The beneficiary family annual income should be up to Rs.6 lakhs for rural areas and urban areas
The beneficiary should be a regular member of any of the Self Help Groups(SHG).
The beneficiary should not avail any financial assistance under the State Government, Central Government or Financial Institutions relating to income generation activities
Note: Highest priority will be given to women and occupational groups belonging to the minority community.
The eligibility criteria of NGO for implementing the microfinance scheme under NMDFC are given below:
The NGO should have been registered for at least 3 years, and it should have a good reputation in the area of its operation
The NGO implementing the Micro Financing Scheme should have the objective of serving the economic and social needs of the weaker sections of the society
The NGO should have basic financial management capability, organisation skills, professional competence and flexibility to implement the lending programme
The NGO should have a proper system of maintaining accounts, and the accounts statement should have been audited
The NGO should have experience in credit administration through Self Help Groups (SHGs) for at least six months, and its recovery performance rating of 90% and above has to be maintained
PAN of all the members
Aadhaar Card of all the members
Valid Residential proof of all the members via Bank Statement, Driving License, Aadhaar Card, Utility Bill and Passport