NMDFC Micro Finance Scheme — ₹1.5 Lakh Loans for Minority SHGs — Frequently Asked Questions

The ceiling depends on the credit line. Under Credit Line-1 an eligible member can draw up to ₹1,00,000, and under Credit Line-2 the limit rises to ₹1,50,000. The amount sanctioned within that ceiling is decided during appraisal of the proposed income-generating activity.

Credit Line-1 carries a rate of 7%, and Credit Line-2 carries 10%. Women borrowers get an additional 2% concession under Credit Line-2, which brings their effective rate down to 8%.

You need to be a member of a Self Help Group or Thrift and Credit Group, and at least 75% of that group's members must belong to notified minority communities — this can drop to 60% only in exceptional cases. The group must have a satisfactory thrift and credit record of at least six months, your family income must be within ₹3.00 lakh a year for Credit Line-1 or ₹8.00 lakh a year for Credit Line-2, and you must not be a defaulter under any other loan scheme.

No. The scheme operates on a rolling basis and stays open throughout the year, so there is no last date to beat. You can approach your State Channelizing Agency or banking partner whenever your group is ready.

Neither is part of the eligibility criteria published for this scheme. What the implementing agency looks at is your group's minority-community composition, its six-month thrift and credit record, your family income limit and whether you have defaulted on any other loan.

No. This is a debt product, so it is non-dilutive — NMDFC does not take a stake in your enterprise. You receive a loan that has to be repaid with interest at the applicable rate.

The funds must go into an income-generating activity. Typical uses include petty trade, handicrafts, food processing and service enterprises, whether you are starting a micro-business or expanding one you already run.

The exact checklist is guided by your State Channelizing Agency or banking partner, and may include proof of minority community status, income certificates, your SHG's records, a project proposal for the proposed income-generating activity, and the completed application form.

Applications are handled offline. Contact the State Channelizing Agency nominated by your state government, or an designated banking partner such as Canara Bank or Punjab Grameen Bank. A list of SCAs is available on the NMDFC website, and the lending policy details are published at https://www.nmdfc.org/lendingpolicy. Your group should already have at least six months of thrift and credit activity behind it before you approach them.

Yes. Women's Self Help Groups and groups operating in rural and minority-concentrated areas are given preference during assessment, which reflects the scheme's focus on reaching the most vulnerable segments of minority communities.

NMDFC Micro Finance Scheme — ₹1.5 Lakh Loans for Minority SHGs is offered by Ministry of Minority Affairs, a government body. It is provided as non-dilutive funding.