Virasat Loan Scheme of NMDFC
By Ministry of Minority Affairs
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Quick Answer
Concessional loans up to ₹10 lakh for artisans and craftspersons from notified minority communities, for working capital and fixed capital.
- Funding amount
- Up to ₹10L
- Funding type
- Debt
- Provider
- Ministry of Minority Affairs
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Open to startups registered in India
About this loan
The Virasat Loan Scheme gives concessional term loans to traditional artisans and craftspersons from India's notified minority communities. It is run by the National Minorities Development & Finance Corporation (NMDFC) under the Ministry of Minority Affairs.
You can borrow up to ₹10 lakh to buy equipment, tools, machinery and raw materials, or to cover working capital. The loan also supports your production and market linkage.
The loan is meant for traditional crafts such as handloom, handicraft, metalwork, leatherwork, embroidery and pottery.
Eligibility
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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
- Up to ₹10L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
The Virasat Loan Scheme provides concessional credit up to ₹10 lakh to eligible minority artisans and craftspersons. The interest rates are highly competitive, set at 5% per annum under Credit Line-1 and 6% per annum for male artisans under Credit Line-2. A significant concession of 1% is provided to female artisans under both credit lines, meaning rates as low as 4% are available. This funding is specifically designed to cover both working capital requirements and fixed capital needs, such as the purchase of essential equipment, tools, machineries, and raw materials. Beyond financial aid, the scheme supports market linkage efforts, helping artisans enhance their production and reach wider markets, thereby fostering sustainable livelihoods and business growth.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are reviewed by the State Channelizing Agencies (SCAs) and banking partners based on the stipulated eligibility criteria, including the applicant's background, financial need, and the viability of their traditional occupation. Preference is given to women artisans and those in minority-dominated occupational clusters. The assessment focuses on ensuring the applicant meets all community, income, and occupational requirements, as well as the proposed use of funds aligns with the scheme's objectives to enhance production and market linkages.
Application Process
- 1
Contact Agency/Bank
Applicant contacts the State Channelizing Agency or a banking partner like Canara Bank/Punjab Grameen Bank for scheme details.
You - 2
- 3
- 4
- 5
- 6
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
What is the maximum loan amount I can avail under the Virasat Loan Scheme?
You can avail a maximum loan amount of up to ₹10,00,000/- (₹10 lakh) under either Credit Line-1 or Credit Line-2 of the scheme.
What are the interest rates for the loan?
Interest rates are 5% per annum for Credit Line-1. For Credit Line-2, it is 6% per annum for male artisans. Female artisans receive a 1% concession under both credit lines, meaning their rates are 4% for Credit Line-1 and 5% for Credit Line-2.
Who is eligible to apply for this loan?
Indian citizens belonging to the notified minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, Jain) with an annual family income not exceeding ₹3 lakh (Credit Line-1) or ₹8 lakh (Credit Line-2), who are artisans or craftspersons in traditional occupations with basic skills/certification, are eligible. Applicants should also not be beneficiaries of similar schemes.
How can I apply for the Virasat Loan Scheme?
Applications are processed offline. NMDFC implements its schemes through State Channelizing Agencies (SCAs) nominated by respective State Governments and banking partners (currently Canara Bank & Punjab Grameen Bank). You will need to contact these agencies or banks for the application process.
What can the loan be used for?
The loan can be utilized for meeting working capital requirements and fixed capital needs, including the purchase of equipment, tools, machineries, and raw materials. Its purpose is to enhance production and facilitate market linkages for your traditional occupation.
Is there any preference for specific applicants?
Yes, preference shall be given to women artisans and occupational clusters located in minority-dominated areas.
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 · last month
Source: Google News aggregated
