Term Loan Scheme for Muslims and Christians - Rajasthan

 Term Loan Scheme

The scheme is for individual beneficiaries and is implemented through the State Channelizing Agency (RMFDCC) . Under the Term Loan Scheme, projects costing up to Rs. 10.00 Lakhs are considered for financing. NMDFC provides loan to the extent of 90% of the project cost subject to a maximum of Rs. 9,00,000. The remaining cost of project is met by the SCA and the beneficiary. However the beneficiary has to contribute minimum of 5% of the project cost. The rate of interest charged from the beneficiary is 6% p.a. on reducing balance method. Assistance under Term Loan Scheme is available for any commercially viable and technically feasible ventures, which for the purpose of convenience are classified in to the following sectors.

• Agriculture & allied
• Technical trades
• Small business
• Artisan and traditional occupations
• Transport and services sector

S.No.	Parameters	Credit Line 1	Credit Line 2
1.	Loan Amount	Up to Rs. 10.00 Lakhs	Up to Rs. 30.00 Lakhs
2.	Rate of Interest for beneficiaries	On loan amount Up to Rs. 50,000/- @ 5% p.a. Over Rs. 50,000/- @ 6% p.a.	For Male Beneficiary 8% For Female Beneficiary 6%
3.	Rate of Interest for SCAs	3% p.a.	6% p.a.
4.	Moratorium period	6 months	6 months
5.	Repayment period for beneficiaries	5 years	5 years
6.	Repayment period for the SCAs	8 years	8 years
7.	Means of financing NMDFC:SCA:Benef.contribution	90:5:5	90:5:5
8.	Utilization Period	3 months	3 months

Relevant Enclosures With Term loan :

For loans up to Rs.50000/- :

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban area.
7. Security - Self Guarantee and Post Dated Cheques.

For loans exceeding Rs.50000/- and up to Rs. 100000/- :

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban area.
7. Security - Post Dated Cheques.
Guarantee of one employee of PSU/GOVT./BANK or one income tax payee. Or Mortgage of landed property of not less than the same value.

For loans exceeding Rs. 100000/- :

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban Area.
7. Security - Post Dated Cheques.  - Guarantee of two employee of PSU/GOVT./BANK or one income tax payee. Or - Mortgage of landed property of not less than the same value.

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(ii) Educational Loan Scheme

The scheme is for the individual beneficiaries and is implemented through the SCAs. The NMDFC extends educational loans with an objective to facilitate job oriented education for the eligible persons belonging to Minorities. Under the scheme a maximum amount of Rs. 10.00 Lakhs is available at the rate Rs. 2.00 lakhs p.a. for technical and professional courses of durations not exceeding five years. An amount of Rs.3.00 lakhs is available for short duration cost intensive skill development trainings having duration of upto one year. Further, for courses abroad, a maximum amount of Rs.20.00 lakhs is available @ Rs.4.00 lakhs per annum for a course duration of maximum 5 years. Funds for this purpose are made available to the SCAs at an interest are of 1% p.a. for on-lending to the beneficiaries at 3% interest p.a. The loan is payable in maximum five years after completion of the course

S.No.	Parameters	Credit Line 1	Credit Line 2
1.	Loan Amount	Maximum loan amount per beneficiary is:- Up to Rs. 3.00 Lakhs for Short Term High Skill Development Courses of 1 year duration. Up to Rs. 10.00 Lakhs for ‘Professional & Job Oriented Degree Courses’ in India with a maximum duration of 5 years @ Rs. 2.00 Lakhs per annum. Up to Rs. 6.00 Lakhs for ‘Professional Post Graduate Courses’ with a maximum duration of 3 years @ Rs. 2.00 Lakhs annum. Up to Rs.20.00 Lakhs for ‘Courses Abroad’ with a maximum duration of 5 years @ Rs. 4.00 Lakhs per annum.	Maximum loan amount per beneficiary is:- Up to Rs. 20.00 Lakhs for ‘Professional Post Graduate Courses’ with a maximum duration of 5 years @ Rs. 4.00 Lakhs per annum. Up to Rs.30.00 Lakhs for ‘Courses Abroad’ with a maximum duration of 5 years @ Rs. 6.00 Lakhs per annum.
2.	Rate of Interest for beneficiaries	3% p.a.	3% p.a.
3.	Rate of Interest for SCA	1% p.a.	1% p.a.
4.	Moratorium period	6 months after completion of the course or getting a job, whichever is earlier.	6 months after completion of the course or getting a job, whichever is earlier.
5.	Delegated authority to SCA sanction loan	SCAs are advised to sanction/disburse loan based on ground reality though the restrictions have been removed.	SCAs are advised to sanction/disburse loan based on ground reality though the restrictions have been removed.
6.	Repayment period for beneficiaries	5 years	5 years
7.	Repayment period for SCA	5 years	5 years
8.	Means of financing NMDFC:SCA:Benefeficiary contribution	90:5:5	90:5:5

Relevant Enclosures With Education loan ..

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban area.
7. Security -
   • Parent/Guardian of the applicant to be taken as Co-borrower.
   • Approved securities equal to the value of the loan such as UTI/NSC/Public Sector Bond, etc. OR Creation of charge on agriculture land having value double the loan amount. OR  Personal surety of permanent employee working in Government/ PSU/ Bank/Autonomous Bodies. The employee should have sufficient years in service to cover the amount being sanctioned as loan. A certificate to be obtained from the surety that in the event of default, the repayments would be made by him/her.
   • Post Dated Cheques towards repayment of loan from the beneficiary i.e the student who has taken the loan.

Eligibility Creteria :-

• The applicant should be in the age group of 16-32 years.
• Confirmed admission in the intended course in recognized institutes is the basic requirement for availing the loan. However , application for loan can be made in anticipation of admission to the recognized institutes. Similarly ,loan can also be sanctioned in anticipation of admission to such institutes.
• Women and physically challenged candidates would be given preference.
• Selection out of the eligible candidates will strictly be on merit.
• The selected candidates should fulfil the annual income criteria which have been specified for rural and urban areas.
• The college/institute should be recognised by the government at the central/state government or by appropriate authority such as AICTE.

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(iii) Micro Financing Scheme

Under the Micro Financing Scheme, micro-credit is extended to the members of the Self Help Groups (SHGs), specially the minority women scattered in remote villages and urban slums who are not able to take advantage of the formal banking credit as well as the NMDFC programmes, through its SCAs. NMDFC is implementing the scheme on the pattern of Grameen Bank of Bangladesh and Rashtriya Mahila Kosh (RMK). The scheme requires that the beneficiaries are organized into Self Help Groups (SHGs) and get into habit of Thrift & credit, however small. The scheme envisages micro–credit to the poorest among the poor through NGOs of proven bonafide and their network of Self Help Groups (SHGs). It is an informal loan scheme which ensures quick delivery of loan at the door steps of the beneficiaries. Under this scheme, small loans up to a maximum of Rs. 50,000 per member of SHG are provided through the NGOs / SHGs. The scheme is implemented through the SCAs as well as the NGOs. Funds are given to the NGOs /SCAs at an interest rate of 1%, which further on-lend to the SHGs, at an interest rate not more than 6% p.a. The repayment period under the scheme is maximum of 36 months.

S.No.	Parameters	Credit Line 1	Credit Line 2
1.	Loan Amount	Up to Rs. 50,000/- per member of SHG	Up to Rs. 1.50 Lakh per member of SHG Up to 30 Lakh (maximum 20 member)
2.	Rate of Interest for SCA	1% p.a.	For Male Beneficiary 4% & For Female Beneficiary 2%
3.	Rate of Interest for NGOs by SCAs	2% p.a. (Margin for SCA 1%)	For Male Beneficiary 5% (Margin for SCA 1%) & For Female Beneficiary 3% (Margin for SCA 1%)
4.	Rate of Interest for SHGs by NGOs	7% p.a. (Margin for NGO 5%)	For Male Beneficiary 10% (Margin for NGO 5%) & For Female Beneficiary 8% (Margin for SCA 5%)
5.	Rate of Interest for SHGs by SCAs	7% p.a. (Margin for SCA 6 %)	For Male Beneficiary 10% (Margin for SCA 6 %) & For Female Beneficiary 8% (Margin for SCA 4%)
6.	Rate of Interest for Beneficiaries / SHGs	7% p.a.	For Male Beneficiary 10% & For Female Beneficiary 8%
7.	Rate of Interest for NGOS by NMDFC directly	1% p.a. (Margin for NGO 6% p.a.)	For Male Beneficiary 4% (Margin for NGO 6%) & For Female Beneficiary 2% (Margin for SCA 6%)
8.	Moratorium Period	3 months	3 months
9.	Delegated authority for SCA to sanction loan to NGOs/Federation	Limit of Rs.25 Lakhs per NGO/Federation	Limit of Rs.25 Lakhs per NGO/Federation
10.	Repayment period for the Beneficiaries	3 years	3 years
11.	Repayment period for the SCAs / NGO	4 years / 3years	4 years / 3years
12.	Utilization period for the SCAs / NGOs	3 months / 1months	3 months / 1months
13.	Means of Financing NMDFC:SCA:Beneficiary contribution	90:5:5	90:5:5

Relevant Enclosures With Micro Finance : 

For loans up to Rs.50000/- :

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban area.
7. Security - Self Guarantee and Post Dated Cheques.

For loans exceeding Rs.50000/- and up to Rs. 100000/- :

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban area.
7. Security -Post Dated Cheques.

- Guarantee of one employee of PSU/GOVT./BANK or one income tax payee.
Or
- Mortgage of landed property of not less than the same value.

For loans exceeding Rs. 100000/- :

1. Post Dated Cheques (20 cheques) or instalment wise
2. Self guarantee deed (Rs. 100 non judicial Stamp)
3. Memorandum of agreement
4. Domicile Certificate
5. Minority Certificate
6. Income Certificate- Family income of the beneficiary should be below Rs.81000/- per annum in rural areas & Rs.103000/- per annum in urban Area.
7. Security -Post Dated Cheques.
   - Guarantee of two employee of PSU/GOVT./BANK or one  income tax payee.
   Or - Mortgage of landed property of not less than the same value.

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(iv) Mahila Samridhi Yojana

It is a unique scheme linking micro-credit with the training to the women members to be formed in to SHGs in the trades such as tailoring, cutting and embroidery etc. is being implemented by NMDFC, through the State Channelising Agencies of NMDFC as well as NGOs. Under the Mahila Samridhi Yojana, training is given to a group of around 20 women in any suitable craft activity. The group is formed into Self Help Group during the training itself and after the training, micro-credit is provided to the members of the SHG formed. The maximum duration of the training is of six months with maximum training expenses of Rs. 500 p.m. per trainee (under revision). During the training a stipend of Rs. 250 (under revision) is also paid to the trainees. The training cost and stipend is met by NMDFC as grant. After the training, need based micro credit subject to a maximum of Rs. 50,000, is made available to each member of SHG, so formed at an interest rate of 5% p.a. (under revision).Loans disbursed under the Micro Financing Scheme Rs. 583.27 Crores. Number of beneficiaries assisted under Micro Financing Scheme 5,18,447 Highest

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(V)SCHEME OF MICRO CREDIT THROUGH NGOs

Quantum of loan under the scheme of micro credit ,loan up to maximum limit of Rs.50000/- per beneficiary (member of self help group) will be available. However ,the emphasis has to be to provide smaller loans repeatedly so that the beneficiary can avail the same and come above the poverty line.

ELIGIBILITY CRITERIA OF BENEFICIARIES:

1. The borrower should be a regular member of a Minority Self Help Group (MSHG) practicing Thrift & Credit for at least six months. A Minority Self Help Group is one which at least 75% of the members are from minority communities. In very exceptional cases, groups up to 60% members belonging to minority communities will also be eligible provided that the other members of the SHG belong to weaker sections i.e. including Scheduled Castes/Scheduled Tribes, other Backward Classes and disabled.
2. The borrower already covered under any other scheme of financing sponsored by central or State Government or Financing institutes and having outstanding loans against their names shall not be eligible under the scheme.

ELIGIBILITY CRITERIA OF NGOs :

1. The applicant NGO should have been registered for at least three years and it should have good reputation of work in the area of its operation.
2. The bye laws of the NGO should have a enabling clause to borrow funds for the purpose of providing loans to the poor.
3. It should have the broad based objectives, serving the social and economic needs of the weaker sections of the society. Preference will be given to organisations working for the welfare of the minorities.
4. It should have the necessary flexibility, professional competence, basic financial management capability and organisational skills to implement the lending programme. It must have outreach services in the operational areas.
5. Its office bearers should not be elected members of any political party.
6. It should have a proper system of maintaining accounts. Accounts should have been audited. There should not have been any serious irregularities observed in the audit, and its accounts should be published.
7. It should be running on sound lines and should not have earned losses during the last three years.
8. It should have experience of Thrift and Credit administration through Self Help Groups (SHGs) of at least six months and its recovery performance should be approximately 90%.

Security

For the purpose of provision of security and rating , NGOs are categorized as Existing NGOs or New NGOs. Existing NGOs are those who have experience of more than three years of dealing with NMDFC,RMK.SIDBI,NABARD etc. in the field of micro financing. The others are categorized as are categorized as New NGOs. The provision of security for the New NGOs and the existing NGOs are as given below

A. In case of New NGOs
- For sanction of funds up to Rs. 10 lacs- no security and rating is required.
- For sanction of funds beyond Rs. 10 lacs- security and rating is a must.

A. In case of Existing NGOs having shown good performance
- For sanction of funds up to Rs. 25 lacs- no security and rating is required.
- For sanction of funds beyond Rs. 25 lacs- security and rating is a must.

The provision of security involves pledging of or marking lien of FDRs of 10 % of the sanctioned

The provision of rating envisages rating of the NGOs from reliable rating agencies on payment of fees or sharing of their experiences with the concerned NGOs by similar organizations like RMK,SIDBI,NABARD etc.

NOTE : "2% rebate will be given to man loanee for their timely repayment of instalments including principal & interest and total exemption of interest will be for woman who timely repay their loan instalments."

Refer:

http://www.rmfdcc.in/page.php?cat_nm=Lending+Schemes&&p_cat=19&&cat_id=35