Lending Scheme of National Minority Development Finance Corporation (NMDFC)

Mewat Development Agency and its role as Channelising Agency

Mewat Development Agency is engaged in all round development of Mewat area consisting of five blocks namely Nuh, F.P. Jhirka, Taoru, Punhana, Nagina of Mewat district and one block Hathin of district Palwal of Haryana State. The Govt.of India, Ministry of Minority Affairs has declared Mewat district as minority concentrated district and in response thereof, the Govt. of Haryana has declared MDA as 2^nd State Channelising Agency for distribution of loan under lending scheme of NMDFC which has allocated Rs. 12.25 crores for the release of the same they wanted a state guarantee of Rs. 10.00 crore in favour of NMDFC, New Delhi. On the request of MDA, the State Govt. agreed to provide state guarantee in favour of NMDFC but wanted a fee of 2% of the amount of the guarantee. MDA has complied with the direction of Finance Deptt. Govt. of Haryana and deposited Rs. 20.00 lacs by challan under State Govt. Head. The State Govt. has given approval of State guarantee in favour of NMDFC. Initially, the NMDFC has released an amount of Rs. 2.26 crores to MDA for term and education loan. The MDA is in progress to distribute term and education loan. The MDA has demanded to NMDFC, New Delhi for releasing of Rs. 3.00 crores for micro financing. The lending scheme will be in shape of the following type.

(i)      Term Loan

          Term Loan will be given to entrepreneurs going for cottage and small scale industries/business/trade etc. for self-employment. The amount of loan will range from Rs. 0.50 lacs to Rs. 2.00 lacs on terms of NMDFC for security of the loan.

(ii)     Education Loan

         This will be given to the meritorious students of Engineering, Medical, MBA and other professional/technical courses preferably to the students belonging to BPL families or from the poor families of SHG members.

(iii)    Loan for Matching Grant

         This will be distributed to the entrepreneurs being financed by banks for industries/trades/business but needs money to deposit as matching grant in the bank.

(iv)    Micro Financing

          This scheme is meant for poor people from the SHGs who will be given loan ranging from Rs. 10,000/- to Rs. 25,000/- for works i.e. dairy, farming, poultry, goatry, piggery etc. or trade/business of sundaries articles according to the local need of the people. The loan amount will be to the members of  SHG through their SHGs to that recovery can be channalised through SHG which has given good result of about 80% recoveries against bank loans in the past. 

          NMDFC has fixed a target of 1000 micro financing by MDA in Mewat area and it will be achieved after the release of allocated amount by NMDFC. This scheme of lending for minority of Mewat area at low rate of interest the maximum of which is 6% and for micro financing it is only 3.5%. This will facilitate the Meo’s (Muslim Community of Mewat) to earn their livelihood through self employment and complete their higher, professional and technical education.

Proposed List of Activities advised by NMDFC under which MDA will provide the lending to the beneficiaries.

However, the local trades or activities for generating self employment may also be considered against their project report submitted alongwith the application.