§1Who it is for

  • Members of six notified minority communities

Useful if

Minority entrepreneurs needing a term loan up to ₹30 lakh

Do not spend time on it if

Applicants above the income caps

§2Eligibility

  1. a) The applicant must be Indian and belong to one of the six notified minority communities: Muslim, Christian, Sikh, Buddhist, Parsi, or Jain.
  2. b) The annual family income should not exceed
  3. Rs. 3.00 lakh per annum under Credit Line–1.
  4. Rs. 8.00 lakh per annum under Credit Line–2.
  5. c) The applicant must be 18 years or above and capable of undertaking self-employment activity.
  6. d) The applicant should not have any outstanding loan or default under any Central/State Government financing scheme.
  7. e) The project proposal should be economically viable and technically feasible.
  8. f) The applicant must have a valid Aadhaar-linked bank account, residence proof, income certificate, and minority community certificate issued by a competent authority.
  9. g) Preference shall be given to women, youth, and occupational groups belonging to the minority communities.
  10. h) Insurance of the borrower and assets financed is mandatory under NMDFC guidelines.
  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 for financing economically viable income generation ventures. Loan of upto ₹20,00,000/- under Credit Line-1 and upto ₹30,00,000/- under Credit line -2 is extended to beneficiaries at 6% p.a. & 8% p.a. respectively. Further, 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 for financing economically viable income generation ventures. Loan of upto ₹20,00,000/- under Credit Line-1 and upto ₹30,00,000/- under Credit line -2 is extended to beneficiaries at 6% p.a. & 8% p.a. respectively. Further, 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

  • Loan up to ₹20 lakh at 6% (CL-1) or ₹30 lakh at 8% (CL-2)
  • 2% concession for women under CL-2

Demerits

  • Income caps ₹3 lakh (CL-1) and ₹8 lakh (CL-2)
  • Applied through State Channelising Agencies

→Related schemes

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Sources

  1. myScheme — Term Loan 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.