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National Minorities Development and Finance Corporation

National Minorities Development and Finance Corporation



Eligibility Criteria:

  1. Applicant should belong to the notified Minority Communities i.e., Muslim, Sikh, Christian, Buddhist or Parsis.
  1. Annual family income of the parent/guardian of the applicant should be below double the poverty line as notified by the Government from time to time.
  1. The Applicant should be in the age group of 16-32 years.
  1. Confirmed admission in the intended course is the basic requirement for availing the loan.  However application for loan can be made in anticipation of admission.  Similarly, loan can also be sanctioned in anticipation of admission.
  1. Women & physically challenged candidates would be given preference.
  1. Selection out of the eligible candidates will strictly be on merit.


Eligible Courses:

  • The course of study should have good potential in the job potential in the job market.
  • The duration of the course will not exceed 5 years however, shorter duration courses may be preferred
  • The College/Institute should have b een offering the courses for the last 3 years & should be recognized by the Central/State Government or by appropriate authority such as AITCE.


Purpose of the Loan:

Loan will be admissible for expenditure on the following items:

  1. Admission fee and tuition fee.
  1. Cost of books, stationery and other instruments required for the course.
  1. Examination fee.
  1. Boarding and lodging expenses.


Maximum Loan Amount:

Maximum permissible loan amount for each year is Rs. 50,000/- and can be availed every year.  The maximum loan amount for the courses of different duration is as shown in the following table:

Course Duration

Eligible Loan Amount (Rs.)

1st Year


2nd Year


3rd Year


4th Year


5th Year


To account for initial admission expenses, if required, in the 1st year, loan amount not exceeding Rs. 75,000/- can be considered.  However the excess loan so provided may be adjusted uniformly over the remaining period of the course i.e., for the remaining four years, balance loan of Rs. 1.75 lakhs would be equally divided and would amount to Rs. 43,750/- per year.

In case a lesser duration of the course, the amount eligible per year under Educational Loan Scheme will be actual course fee or Rs. 50,000/-, whichever is less.  Other norms for Educational Loan Scheme.

Terms of Release of Loan:-

  1. The loan will be released in the beginning of each trimester/semester/year.  The portion of payment required to be made to the College/Institute will be released directly through Cheque in the name of the Institute/College and the remaining sum will be paid to the candidates through Cheque.
  1. For availing loan in the subsequent term, the candidate will approach the SCA with a letter from the Institute/College stating that the candidate has successfully completed the last term and has been admitted in the subsequent term.  The details of estimated expenditure for the new term under consideration will also be enclosed with the letter.  Accordingly, the SCA will release portion of the funds required to be released to the Institute through provide the remaining sum to the candidates through Cheque.


Pattern of Financing:

NMDFC’s Share amount        -       90% of the sanctioned

SCA Share amount               -       10% of the sanctioned

Rate of Interest                  -       Interest Free

Moratorium period -     6 months from the date of completion of course for getting employment.

Repayment of Loan – Principal amount would be recovered in 60 monthly equated installments, from the succeeding month. In case of discontinuation of studies due to any reason whatsoever, the loan with interest would become repayable immediately in full or in installments.

Security – Parent/Guardian of the applicant to be taken as co-borrower


Approved securities equal to the value of the loan.