Scheme for Grants-in-aid to State Channelising Agencies (SCAs) of National Minorities Development and Finance Corporation (NMDFC)


The objective of this scheme is to promote the economic activities amongst the backward sections of notified minorities. To achieve its objective, National Minorities Development and Finance Corporation NMDFC is providing concessional finance for self-employment activities to eligible beneficiaries belonging to the minority communities, having a family income Rs. 81,000/-p.a. in Rural Areas and Rs. 1,03,000/- p.a. in Urban Areas. From 2014, a new annual family income eligibility of up to Rs. 6.00 lakh per annum has been introduced with effect from September 2014. A high rate of interest is given to this category. The financial assistance is given in terms of Loan

The scheme is for individual beneficiaries and is implemented through the State Channelising Agencies (SCAs). NMDFC provides the loan to the extent of 90% of the project cost subject to a maximum of Rs. 18.00 lakh. The remaining cost of the project is contributed by the SCA and the beneficiary. However, the beneficiary has to contribute a minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 6% p.a. on reducing balance method. For higher income group of up to 6.00 lakh, the rate of interest is 8% for males and 6% for females.


The scheme aims to achieve the following goals:

  • To strengthen the infrastructure of State Channelising Agencies (SCAs) in order to improve their operations including recovery of loans.
  • To promote economic and developmental activities for the benefit of "Backward Sections" amongst the women belonging to Minority communities
  • To assist by providing financial assistance in terms of loan by the Central Government Of India or by the Reserve Bank of India and Micro-financing
  • To promote self-employment and other ventures for the benefits of Minorities.
  • To assist the up-gradation of technical and entrepreneurial skills of Minorities for proper and efficient management of production units.
  • To assist the State level organisations dealing with the development of the Minorities by way of providing financial assistance or equity contribution and in obtaining commercial funding or by way of refinancing


The individuals should fulfill the following conditions:

  1. The individuals should belong to one of the Minority Community i.e. Muslims, Christians, Sikhs, Buddhists and parsis
  2. The individual families having “Annual Income” less than Rs. 81,000/- in Rural Areas are eligible for this scheme.
  3. The individual families having “Annual Income” less than Rs. 1,03,000/- in Urban Areas are eligible under the scheme.
  4. Also For higher income group of up to 6.00 lakh are eligible.
  5. All SCAs performing well for NMDFC’s scheme will be eligible.
  6. The SCA which is dormant/non-functional or does not draw funds from NMDFC for implementing its lending schemes, shall not be eligible for grants under this Scheme.
  7. Where more than one SCA is in existence in any State/UT, all eligible SCAs can be funded under the grants-in-aid scheme on a pro-rata basis based on the number of minority beneficiaries serviced by each SCA.
  8. The grants-in-aid will be provided on a first come first serve basis.


State Channelising Agencies (SCAs), Minority Community Individuals


The assistance will be available for the following activities:

  1. Awareness campaigns.
  2. Improvement in Delivery System.
  3. Loan Recovery
  4. TA and DA for staff and officers of SCA limited to 5% of total GIA sanctioned.

How To Apply

Contact to any of the following:

  1. Contact to Ministry Of Minority Or
  2. Approach to National Minorities Development and Finance Corporation (MDFC) Or
  3. Contact to Independent Agency authorized by Ministry/NMDFC who is rsponsible nder the scheme.

Sponsored By

Central Government of India


Ministry of Minority Affairs

Date of Launch

Valid Upto





Sponsored By

Central Government of India

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