Self Employment Lending Schemes- Credit Line 1-Term Loan Scheme

The National Minorities Development & Finance Corporation (NMDFC) through state channelizing Agencies (SCAs) implements this scheme for individuals.

Scheme highlights

  • Projects with the costing of up to INR 20 lakh are considered
  • NMDFC provides up to 90% of the project cost as a loan (maximum up to INR 18 lakh); the balance must be paid by the beneficiary and the SCA 
  • Beneficiary contribution must be at least 5% of the total cost
  • Interest rate is levied on a reducing balance method at 8% per annum
  • SCA interest rate is 5% per year
  • Moratorium period of up to six months
  • Beneficiary repayment period five years
  • Repayment period for SCAs is eight years
  • Utilization must be within three months

Eligibility criteria

  • The assistance under this scheme is available for any commercially feasible and technically viable project
  • Projects must be within the following sectors:
  • Agriculture and allied categories
  • Transport and service sectors
  • Technical trades
  • Artisan and traditional occupations
  • Small businesses

Documentation and procedure

The SCAs are nominated by the state or union territory government and are responsible for the scheme implementation. The channelizing agency has an office at the district level and applicants may submit their forms at this office. 

The beneficiaries must contact the respective district SCA (the details on the state-wise agencies is available online)

The SCA then links the beneficiary’s loan account to his/her Aadhar Card; alternative biometric identification in case Aadhar is not missing is also available. 

For more information click here.

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