NMDFC Term Loan Scheme — Up to ₹30 Lakh at 6–8% for Minority Entrepreneurs — Frequently Asked Questions

It depends on which credit line you qualify for. Credit Line-1 lends up to ₹20 lakh, and Credit Line-2 lends up to ₹30 lakh. The income ceiling you fall under determines which line you can access — ₹3.00 lakh of annual family income for Credit Line-1, or ₹8.00 lakh for Credit Line-2.

Credit Line-1 is priced at 6% per annum and Credit Line-2 at 8% per annum. If you are a woman borrower, you get an additional 2% concession under Credit Line-2, which brings your effective rate to 6% per annum.

You need to be an Indian citizen from one of the six notified minority communities — Muslim, Christian, Sikh, Buddhist, Parsi or Jain. You must be at least 18 years old and capable of taking up a self-employment activity. Your annual family income has to stay within ₹3.00 lakh for Credit Line-1 or ₹8.00 lakh for Credit Line-2, and you should not have any outstanding loan or default under a central or state government financing scheme. The project you propose must also be viable and technically workable.

No. The scheme runs on a rolling basis with no fixed closing date, so applications can be submitted at any time of the year through the implementing agency for your area.

Neither is listed among the published requirements for this scheme. The eligibility checks that apply here are minority community status, the family income ceiling, your age, and a clean record with earlier government financing schemes.

No. This is a term loan facility, not an equity investment. You borrow a fixed amount, repay it along with interest at the applicable rate, and continue to own your business outright with no dilution of your stake.

Applications are handled offline. You can approach the State Channelizing Agency (SCA) nominated by your State Government, or one of NMDFC's banking partners — currently Canara Bank and Punjab Gramin Bank. These agencies provide the application form and the detailed guidelines.

Along with the completed application form, you will need an Aadhaar-linked bank account, proof of residence, an income certificate, and a minority community certificate issued by a competent authority. You must also prepare and submit a detailed project proposal for the venture you intend to fund.

Any self-employment venture that is economically viable and technically feasible. In practice that covers a wide range of small businesses and income-generating activities where the loan can be put to productive use.

The proposal is assessed on two fronts — whether it can realistically generate income, and whether it can be executed technically. Your repayment record is reviewed in parallel to confirm that nothing is outstanding or in default against any earlier central or state government financing scheme. Where applications are otherwise similar, preference may go to women, youth and certain occupational groups within the minority communities.

NMDFC Term Loan Scheme — Up to ₹30 Lakh at 6–8% for Minority Entrepreneurs is offered by Ministry of Minority Affairs, a government body. It is provided as non-dilutive funding.