The National Minorities Development and Finance Corporation was incorporated on 30th September, 1994 with an authorised share capital of Rs. 500 crore.

The paid up share capital ... on 31.3.1996 was Rs.97.9524 crore. After release of another Rs. 36 crore by the Government of India and Rs. 1 crore each from Karnataka and West Bengal, Rs. 5.00 crore by Bihar during 1996-97 ... as on 31.3.1997 was Rs. 141.1624 crore.

During 1996-97, the Corporation has sanctioned loans worth Rs. 49.68 crores to 17 State Channelising Agencies for ... 11000 beneficiaries. The Corporation has also disbursed an amount of Rs.44.23 crores to 10 SCAs for ... over 10000 beneficiaries ...

The cumulative sanction ... till 31.3.1997.was Rs. 136.36 crore, and cumulative disbursement ... was Rs.80.76 crores.

... The cumulative amount of recoveries upto 31.3.1997 from SCAs as principal amount was Rs. 7.42 crore. Out of (which) Rs.6.45 crore was towards Term Loan and the balance towards Margin Money Loans. The average percentage of recoveries of principal and interest from the SCAs upto 31.3.1997 was 71%.

... A major corrective measure introduced ... made pre-identification of beneficiaries necessary before disbursement of funds ..

Loan limit has been increased in both ... Term Loan and Margin Money Loan w.e.f. 1.4.1997 ..

Project costing upto Rs. 5 lakh are considered 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 in the ratio of 10% and 5% of the project cost respectively.

... NMDFC provides loan upto 25% of the project cost subject to maximum of Rs. 1.25 lakh per unit. The SCA and the beneficiary are expected to contribute in the ratio of 10% and 5% respectively.

Eligibility Criteria for Availing Loan A. The applicant must belong to any one of the notified religious minority groups.

B. The annual family income of the applicant must be below double the poverty line which at present is 22,000/- per annum.

Procedure for Availing Assistance

Persons amongst the target groups interested in availing NMDFC loan have to apply to channelising Agency of their State on prescribed application form.

Channelising Agencies also from time to time, invite applications through press advertisement and personal contact.

Based on the response from the beneficiaries, the State Channelising Agencies prepare schemewise proposals and forward it to NMDFC, NMDFG provides funds to the State Channelising Agencies for disbursement to the identified beneficiaries in respect of proposals found to be technical and economically viable.

Nature of Projects Financed

In general, NMDFC provides loan for any commercially viable self-employment venture ... grouped under following ... sectors ;-

a.      Agricultural and Allied activities.

b.     Technical Trade.

c.      Small business

d.     Artisan and Traditional Occupations

e.      Transport and Service Sector.

Formulation of Model Schemes and Guidelines

The corporation (has) formulated its guidelines and 50 model schemes ...

Financial Highlights

The operations during the year have resulted in a surplus of income over expenditure of Rs. 5.49 crore ... The corporation has been exempted from payment nf income tax u/s 10(26BB) of the Income Tax Act. ..

Statewise Sanction and Disbursement, 30.9.1994 to 31.3.1997