Virasat Loan Scheme by NMDFC — Up to ₹10 Lakh for Minority Artisans — Frequently Asked Questions

The scheme sanctions concessional term loans of up to ₹10 lakh. This ceiling applies to both Credit Line-1 and Credit Line-2, so the maximum you can borrow is ₹10 lakh.

Under Credit Line-1 the rate is 5% per annum. Under Credit Line-2 the rate is 6% per annum for male artisans. Women artisans get a 1% concession on both credit lines, which means 4% per annum on Credit Line-1 and 5% per annum on Credit Line-2. So the effective range across the scheme is 4% to 6% per annum.

The two credit lines differ mainly in their family income ceilings and their interest rates. Credit Line-1 covers families with an annual income of up to ₹3 lakh and carries a 5% per annum rate. Credit Line-2 has a higher income ceiling of ₹8 lakh per annum and carries a 6% per annum rate for male artisans. Both offer a maximum loan of up to ₹10 lakh.

You need to be an Indian citizen belonging to one of the six notified minority communities — Muslim, Christian, Sikh, Buddhist, Parsi or Jain — and you must be an artisan or craftsperson working in a traditional occupation such as handloom, handicraft, metalwork, leatherwork, embroidery or pottery. Your annual family income must be within ₹3 lakh for Credit Line-1 or ₹8 lakh for Credit Line-2. You should have basic skills or certification in the craft, verifiable by a competent authority, hold a minority certificate and an Aadhaar-linked bank account, and not already be a beneficiary of a similar artisan financing scheme.

The scheme's stated eligibility conditions do not include DPIIT recognition or MSME registration. What is required instead is a minority community certificate, a valid Aadhaar-linked bank account, proof of income, and evidence of your craft skill or certification verified by a competent authority.

It is a loan, not a grant, and no equity stake is taken. The Virasat Loan Scheme is a debt product, so the sanctioned amount is repaid with interest and you retain full ownership of your enterprise.

The funds can go towards fixed capital — equipment, tools and machinery — as well as working capital and raw material purchases. The stated purpose is to strengthen your traditional occupation by improving production and supporting market linkage, so the proposed use of funds should align with those objectives.

No. Applications are rolling and the scheme stays open throughout the year, so there is no last date to miss. You can approach the relevant agency or banking partner at any point.

Applications are handled offline. NMDFC implements the scheme through State Channelizing Agencies (SCAs) nominated by the respective state governments, along with banking partners, currently Canara Bank and Punjab Grameen Bank. You need to identify and contact the SCA for your state or one of these banking partners to obtain the application form and scheme guidelines. Further details are available at https://www.nmdfc.org/lendingpolicy.

Expect to submit proof of Indian citizenship, your minority community certificate, details of an Aadhaar-linked bank account, proof of income, artisan or craftsperson skill certification, and a proposal explaining how the loan will be used. Applications are reviewed against the eligibility criteria, and verification may involve a site visit or an interview.

Yes. Preference is given to women artisans and to occupational clusters located in minority-dominated areas, provided the applicants meet the rest of the eligibility criteria.

Virasat Loan Scheme by NMDFC — Up to ₹10 Lakh for Minority Artisans is offered by Ministry of Minority Affairs, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.