NMDFC INCREASES MAXIMUM LIMIT UNDER MICRO FINANCE LENDING TO RS.25,000; REDUCES RATE OF INTEREST TO 4%

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In order to improve the lot of poor among the minorities, the National Minorities Development and Finance Corporation (NMDFC) has increased the maximum limit of loans under the Micro Financing Scheme upto Rs.25,000. The increase constitutes a quantum jump from the existing Rs. 10,000 limit. The Corporation has also reduced the rate of interest on loans to 4% from 10% under this scheme. Announcing these decisions while inaugurating a seminar to review the working of various schemes of NMDFC here today, the Minister for Social Justice and Empowerment Dr. Satyanarayan Jatiya said that these initiatives would help NMDFC to reach the poorest among the minorities particularly in rural areas. . Dr. Jatiya said that the majority of population in this segment of minorities is in constant need of small loans for either sustaining their livelihood or improving the same or creating new income generating avenues. He said that the Corporation is also actively considering to start a Student Loan Scheme from this year. The loans would be advanced to poor students belonging to minorities for pursuing technical and professional education.

The West Bengal Minister for the Welfare of the Minorities, Youth Development and Technical Education, Shri Moh. Salim urged NMFDC to work for overall development of the minorities rather than a mere loaning agency. Speaking as the Chief Guest Shri Salim called upon the Central government to evolve an inbuilt mechanism to bridge the shortfall in recoveries of loans advanced by the corporation.

The Chairman of the NMFDC Qari Mohammad Mian Mazhari said that a meeting of economic and education experts would be held in December to improve the reach of the Corporation. He said that the activities of the NMDFC have progressively increased during the last nine years and has provided financial assistance to more than 1.85 lakh beneficiaries. He said that besides the urban centres, NMFDC is focussing on rural areas where majority of its target groups are located. Shri Mazhari said that nearly 50,000 beneficiaries have been assisted through a network of 100 NGOs under the Micro Financing Scheme.

The representatives of State Channelising Agencies from various states, NABARD, Planning Commission and various corporations working under the Ministry of Social Justice and Empowerment participated in the day-long seminar.