§1Who it is for

  • Members of minority SHGs/Thrift and Credit Groups

Useful if

Minority women in SHGs needing micro loans

Do not spend time on it if

Individuals outside an SHG/TCG

§2Eligibility

  1. a) The scheme is implemented through Self Help Groups (SHGs) or Thrift and Credit Groups (TCGs) comprising members of minority communities.
  2. 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.
  3. In exceptional cases, groups with minimum 60% minority members may also be considered.
  4. c) The annual family income of each beneficiary must not exceed
  5. Rs. 3.00 lakh under Credit Line–1.
  6. Rs. 8.00 lakh under Credit Line–2.
  7. d) The SHG should have a satisfactory record of thrift and credit activity for at least six months.
  8. e) The beneficiaries should not be defaulters under any other loan scheme.
  9. f) Loans shall be used for income-generating activities such as petty trade, handicrafts, food processing, and service enterprises.
  10. g) Preference shall be given to women SHGs and groups operating in rural and minority-concentrated areas.
  11. Not eligible: Other than Six Notified minority communities having annual family income of more than Rs. 3.00 Lakhs under credit line 1 and of more than Rs.8.00 Lakhs under credit line 2.

§3Benefits

  • Concessional Credit to the beneficiaries among minority communities.
  • 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.

§4Norms — pattern of assistance

  1. 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.

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    [Offline] 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).

§7Pros and cons

Merits

  • Up to ₹1 lakh (CL-1) or ₹1.5 lakh (CL-2) per member
  • Reaches members without bank access

Demerits

  • At least 75% of group members must be minorities
  • Small loan size

→Related schemes

Need help with MFS-NMDFC?

Eligibility check, DPR and application file — ask us on WhatsApp.

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. myScheme — Micro Finance Scheme of NMDFC
  2. NMDFC Lending Policy

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.