Term Loan Scheme of NMDFC
By Ministry of Minority Affairs
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
A loan scheme by NMDFC providing up to ₹30 lakh at concessional interest rates for economically viable income generation ventures by beneficiaries from India's minority communities.
- Funding amount
- ₹20L – ₹30L
- Funding type
- Debt
- Provider
- Ministry of Minority Affairs
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The Term Loan Scheme, administered by the National Minorities Development & Finance Corporation (NMDFC) under the Ministry of Minority Affairs, aims to provide financial assistance for economically viable income generation ventures. It targets individuals from notified minority communities across India who are seeking to establish or expand self-employment activities. The scheme offers two credit lines with varying loan limits and interest rates, designed to support micro and small enterprises. By providing concessional credit, NMDFC seeks to uplift the socio-economic status of minority communities and foster entrepreneurship.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Benefits & Funding
- Amount
- ₹20L – ₹30L
- Fund type
- Debt
- Repayment
- Repayable
What You Get
The scheme provides concessional term loans up to ₹20 lakh under Credit Line-1 and up to ₹30 lakh under Credit Line-2, for financing economically viable income generation ventures. The interest rates are 6% per annum for Credit Line-1 and 8% per annum for Credit Line-2. A further concession of 2% in the interest rate is extended to women beneficiaries under Credit Line-2, making the effective rate 6% for them. This financial support aims to empower individuals from minority communities to establish or expand their businesses.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are evaluated based on the economic viability and technical feasibility of the proposed income generation venture. Applicants' financial history is also reviewed to ensure no outstanding loans or defaults under previous government schemes. Preference may be given to women, youth, and specific occupational groups within the minority communities.
Application Process
- 1
Apply via SCA/Bank
Applicant submits application, project proposal, and supporting documents to State Channelizing Agencies or Banking Partners.
You - 2
- 3
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who is eligible to apply for this loan scheme?
Indian citizens belonging to the Muslim, Christian, Sikh, Buddhist, Parsi, or Jain minority communities are eligible. Applicants must be 18 years or older, capable of self-employment, and not have defaulted on any previous government loans. Family income limits apply based on the chosen credit line.
What is the maximum loan amount available?
The scheme offers a maximum loan of ₹20 lakh under Credit Line-1 and up to ₹30 lakh under Credit Line-2 for economically viable income generation ventures.
Are there any special benefits for women applicants?
Yes, women beneficiaries are eligible for a 2% concession on the interest rate under Credit Line-2, reducing their effective interest to 6% per annum.
How do I apply for the Term Loan Scheme?
Applications are processed offline through State Channelizing Agencies (SCAs) nominated by respective State Governments and through banking partners like Canara Bank and Punjab Gramin Bank. You will need to submit a project proposal and required documents to these agencies.
What kind of projects are supported?
The scheme supports economically viable and technically feasible income generation ventures. This includes a wide range of self-employment activities and small businesses.
Sources
Data on this page is compiled from official program and provider references.
News
- IIM Bangalore signs agreement with minority affairs ministry, NMDFCnews.careers360.com · 4 weeks ago
Source: Google News aggregated
