NMDFC has two channels to reach the ultimate beneficiaries; one through State Channelising Agency (SCA) nominated by respective State/UT Government and another through the Non-Governmental Organization (NGO). Accordingly, financial Assistance Programmes of NMDFC are of two types one through the SCAs and another through the NGOs. Details of loaning schemes under these two programmes are as given below:-

1. SCA PROGRAM
   
   

   1.TERM LOAN SCHEME

   Under the Term Loan Scheme, projects costing upto Rs. 5 lacs are considered for financing to individual beneficiary. NMDFC provides loan to the extent of 85% of the project cost subject to a maximum of Rs. 4,25,000/-. The remaining cost of project is met by the SCA and the beneficiary, however the beneficiary has to contribute minimum of 5% of the project cost.

   The statement of rate of interest of Term Loan Scheme is as given below :--

   LOAN LIMIT	RATE OF INTEREST
   Upto Rs. 5.00 Lacs	6%

   THE LOAN IS REQUIRED TO BE REPAID BY THE BENEFICIARIES OVER A PERIOD OF 5 YEARS.

   Assistance under Term Loan Scheme is available for commercially viable & technically feasible ventures which for sake of convenience are classified into following sectors :--

   a) Agriculture & Allied.

   b) Technical Trade.

   c) Small Business.

   d) Artisan & Traditional Occupations.

   e) Transport & Service Sector.
   
   

   Click on either of above indicated sectors for getting an illustrative, though not exhaustive, list of schemes belonging to that sector.
   
   

   2.MARGIN MONEY LOAN SCHEME

   Margin Money assistance is provided to beneficiaries availing Bank Finance. Generally Public Sector Bank finance for 60% of the project cost and seek 40% margin from the beneficiaries. Under Margin Money Loan Scheme, NMDFC provides the eligible beneficiaries loan to meet the requirement of the margin asked by the bankers. For this purpose, loan, upto 25% of the project cost subject to the maximum of Rs. 1.25 lacs per unit is made available. The SCA and the beneficiary are expected to contribute jointly 15% of the project cost with minimum of 5% share of the beneficiary.

   Recently, NMDFC has also introduced the provision of refinance in the operation of Margin Money Loan Scheme with a view to provide timely assistance to beneficiaries seeking bank finance.

   LOAN LIMIT	RATE OF INTEREST
   Upto Rs. 1,25,000/-	3%

   
   THE LOAN IS REQUIRED TO BE REPAID BY THE BENEFICIARIES OVER A PERIOD OF 5 YEARS.

   3.MARGIN MONEY LOAN SCHEME
   
   During the year, 2003-2004, NMDFC has introduced the scheme of Educational Loans with the objectives to facilitate job-oriented education amongst the weaker section of the minorities. The scheme envisages maximum loan of Rs.75,000/- for persuing professional and technical courses of duration not exceeding 2 years. Funds for this purpose are made available to the SCAs at interest rate of 1% for lending to the beneficiaries at 3%. The loan is repayable maximum in five years after completion of the course.

    

2. NGOs PROGRAMME

   1.MICRO CREDIT SCHEME

NMDFC has very recently launched scheme of Micro Financing on the pattern of Grameen Bank of Bangladesh and Rashtriya Mahila Kosh under the Department of Women and Child Development, Ministry of Human Resources Development in our own country. The Scheme envisages micro credit to the poor sections among the target group through selected NGOs of proven bonafides and their network of Self Help Groups. It is an informal loan scheme which ensures quick delivery of loan at the door-steps of the beneficiaries with a constant follow up. It also envisages as a pre-requisite that the beneficiaries are first organised into Self Help Groups and get into the habit of effecting regular savings, however, small. Under the scheme loans maximum upto Rs. 25,000/- per beneficiary is provided. Funds are then made available to NGOs at an interest rate of 1% which they further lend to the beneficiaries at interest rate of 5%. The repayment period for the loan is 36 months with a moratorium of 3 months repayment of principal amount.



2.INTEREST FREE LOAN FOR PROMOTION OF SHGs

Financial assistance in the form of interest free loan is provided to the NGOs for promotion of Self Help Groups (SHGs). The maximum amount of loan available is Rs.2.15 lacs for promotion of 50 SHGs of about 1000 members. The loan is payable after one year and is adjusted by way of grant at the rate of 25% of the loan advanced by the SHGs and 5% on their growth of savings (provided the growth in savings is atleast 10% over the last year.