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Banking,Financial Services and Insurance

Term Loan Scheme of NMDFC

Under this scheme, credit of up to Rs. 20 lacs under Credit Line-1 and up to Rs. 30 lacs under Credit line -2 is extended to beneficiaries among minority communities at 6% p.a. & 8% p.a. respectively for financing economically viable income generation ventures.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

Concessional Credit to the beneficiaries among minority communities.

Who can apply

a) The applicant must be Indian and belong to one of the six notified minority communities: Muslim, Christian, Sikh, Buddhist, Parsi, or Jain. | b) The annual family income should not exceed: | Rs. 3.00 lakh per annum under Credit Line–1. | Rs. 8.00 lakh per annum under Credit Line–2. | c) The applicant must be 18 years or above and capable of undertaking self-employment activity. | d) The applicant should not have any outstanding loan or default under any Central/State Government financing scheme. | e) The project proposal should be economically viable and technically feasible. | f) The applicant must have a valid Aadhaar-linked bank account, residence proof, income certificate, and minority community certificate issued by a competent authority. | g) Preference shall be given to women, youth, and occupational groups belonging to the minority communities. | h) Insurance of the borrower and assets financed is mandatory under NMDFC guidelines.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Who can apply for the NMDFC Term Loan Scheme?

The Term Loan Scheme is open to individuals belonging to one of the six notified minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, and Jain). The applicant must have an annual family income of up to Rs. 3.00 lakh under Credit Line–1 and up to Rs. 8.00 lakh under Credit Line–2.

What is the maximum amount of loan available and what are the interest rates?

Under Credit Line–1, loans up to Rs. 20.00 lakh are available at 6% interest per annum. | Under Credit Line–2, loans up to Rs. 30.00 lakh are available at 8% interest per annum for male beneficiaries and 6% for female beneficiaries.

What is the repayment period and moratorium for the Term Loan?

A moratorium period of six months is provided, after which the beneficiary must repay the loan within five years.

What kind of activities can be financed under the Term Loan Scheme?

Term loans can be availed for any viable income-generating project, including activities in agriculture & allied sectors, technical trades, small businesses, transport services, and traditional occupations.