Under the Term Loan Scheme, projects costing up to Rs. 5 Lacs are considered. NMDFC provides loan to the extent of 85% of the project cost subject of 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. Rate of interest charged from beneficiaries is 6% p.a. on reducing balance.

Assistance under Term Loan Scheme is available for any commercially viable and technically feasible venture which for the sake of convenience are classified into following sectors:

An illustrative list of self-employment projects grouped under the above referred sectors is given in Annexure-II. The list is illustrative and not exhaustive.

MAXIMUM LOAN AMOUNT        Rs. 5.00 Lakhs                                    RATE OF INTEREST          6 % p.a. on Reducing Balance                                    REPAYMENT PERIOD                5 Years                                      FINANCING PATTERN                                      NMDFC Share           85%                                    SCA Share               10%                                    Benf. Share        5 %

i) MARGIN MONEY LOAN SCHEME
(The scheme is for the individual beneficiaries and is implemented through the SCAs)

Margin money assistance is provided to beneficiaries availing Bank Finance. Generally Public Sector Banks finance upto 60% of the project cost and seek 40% margin from the beneficiaries. Under Margin Money Loan Scheme, NMDFC provides loan to the eligible beneficiaries to meet the requirement of margin asked by the bankers. For this purpose, loan upto 25% of the project cost subject to a maximum of Rs. 1.25 lacs per unit is made available. The SCA and the beneficiary are expected to contribute the remaining amount. Rate of interest charged from the beneficiaries is 3% p.a. on reducing balance.

iii) EDUCATIONAL LOAN SCHEME
(The scheme is for individual beneficiaries and is implemented through the SCAs).

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.50,000/- every year for pursuing professional & technical courses of duration not exceeding 5 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 5 years after completion of the course.

iv) MICRO FINANCING SCHEME
(The scheme is for the members of Self Help Groups and is implemented through the SCAs as well as NGOs)

NMDFC launched scheme of Micro Financing in 1998 on the pattern of Grameen Bank of Bangladesh and Rashtriya Mahila Kosh under the Department of Women and Child Development in our own country. The scheme envisages micro credit to poorest among poor through selected NGOs of proven bonafide 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 a pre-requisite that the beneficiaries are first organised into Self Help Groups and get into habit of effecting regular savings, however small. Under the scheme, loan upto maximum of Rs.25,000 per beneficiary can be provided. The funds are made available to NGOs @1% interest p.a. who further lend to the SHGs @ 5% interest p.a. The repayment period is maximum of 36 months.

v) INTEREST FREE LOAN FOR PROMOTION OF SHGs
(The scheme is directly implemented by NMDFC through NGOs).

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 lof 50 SHGs of about 1000 members. The loan is repayable 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)


vi) MAHILA SAMRIDHI YOJANA
(The scheme is implemented through NGOs as well as SCAs).

Under Mahila Samridhi Yojana, training is given to a group of around 20 women in any suitable craft activity. The group is formed into a Self Help Group during the training itself and after the training, micro-credit is provided to the members of SHG formed. The maximum duration of the training is of 6 months with maximum training expenses of Rs.500/- p.m. per trainee. During the training, a stipend of Rs.250/- p.m. is also paid to the trainees. The training cost and stipend is met by NMDFC as grant. After the training, need based micro credit (subject to maximum of Rs.25,000/-) is made available to each member of the Self Help Group so formed at interest rate of 4%.