National Minorities Development & Finance Corporation

2

• NMDFC was set-up on 30th September 1994 under Section 25 of the Companies Act.

• Functioning under Ministry of Minority Affairs (since 2006) earlier under the Ministry of Social Justice & Empowerment.

• Registered office – Ist Floor., CORE-I, SCOPE Minar, Laxmi Nagar, Delhi.

Introduction

Mandate of NMDFC

3

• To promote economic empowerment of “backward sections” of Minorities, by extending concessional credit, for income generation activities .

• Undertake Developmental Activities such as Skill Development for wage/self employment & Marketing Assistance.

• Target group comprises of notified Minorities viz., Muslims, Christians, Sikhs, Buddhists, Parsis & Jains with Annual Family Income of Rs.81,000 for Rural Areas & Rs.1.03 lacs for Urban areas.

• Recently, Annual Family Income Increased to Rs.6.00 lacs (creamy layer) for loans at higher interest rate.

4

• Authorized Share Capital Rs.1500.00 Crs.• Paid-Up Share Capital Rs.1209.93 Crs.

(80.66%)As on 02.03.15 Auth. Paid-Up

Balance(O/S)G.O.I. Rs.975.00 Crs. Rs. 975.00 Crs. Rs. 0.00

Crs. (65.00%) (65.00%) (0%)

Ind./Orgns. Rs.135.00 Crs. Rs. 0.01 Crs. Rs. 134.99 Crs. (9%) (0.01%) (8.99%)

States/UTs Rs.390.00 Crs. Rs. 234.92 Crs. Rs. 155.08 Crs. (26.00%) (15.66%). (10.37%)

Total Rs.1500 Crs. Rs. 1209.93 Crs. Rs. 290.07

Crs.

Equity Contribution Status

• increase in authorized share capital to Rs. 3,000.00 Crs. Approval of ROC is required

5

Equity Contribution Status

History of Capital Structure of NMDFCPeriod GOI States/UTs Others Total

1992-93 to 1996-97 25% 26% 49% 100%

1997-98 to 2001-02 60% 26% 14% 100%

2002-03 to till date 65% 26% 9% 100%

6

Present Business Model Credit Line-I

(Existing)Term Loan Micro Credit Education Loan

Income level of Rs. 1,03,000/- for Urban areas & Rs. 81,000/- for Rural areas

Rs. 20.00 LakhIndividually SHG

(up to 20 Members in each group)

Domestic course

Foreign Course

Rs. 1.0 Lakh Rs.20.00 Lakh Rs. 15.00 Lakh Rs. 20.00Lakh

Rate of Interest for beneficiary

6% 7% 7% 3% 3%

Margin for SCA:- Directly to benef /SHGFinancing through NGO

3%NA

6%1%

6%1%

2%NA

2%NA

Margin for NGO NA 5% 5% NA NAMargin for NMDFC 3% 1% 1% 1% 1%

7

Present Business Model Credit Line –II (New)

Term Loan Micro Credit Education Loan

Income level of Rs. 6.00 lacs p.a Rs. 30.00

Lakh

Individually SHG (upto 20 Members in each group)

Domestic course

Foreign Course

Rs. 1.50 Lakh Rs. 30.00 lakh Rs. 20.00 Lakh Rs. 30.00 Lakh

Rate of Interest forMale beneficiary 8% 10% 10% 8% 8%

Female beneficiary 6% 8% 8% 5% 5%

Margin for SCA:- Directly to benef/SHGFinancing through NGO

3%NA

6%1%

6%1%

2%NA

2%NA

Margin for NGO NA 5% 5% NA NA

Margin for NMDFCFor Male BeneficiaryFor Female Beneficiary

5%3%

4%2%

4%2%

6%3%

6%3%

8

Loaning to through State Channelising Agencies (SCAs) Nominated by respective State Govts and NGOs.

37 SCAs in 24 States/3 UTs & 212 Associated NGOs. Individual beneficiaries/SHGs are assisted under

Term Loan/Micro Finance schemes for Income Generating Activities while Educational Loan is for pursuing professional and technical courses.

Developmental Schemes viz., Skill Development & Marketing Assistance.

Present Business Model

9

• The Maulana Azad National Academy for Skills (MANAS) has been established by NMDFC.

• It is a Special Purpose Vehicle (SPV) set-up as a govt. non-profit society on 11th November 2014 by Hon’ble Minister of Ministry of Minority Affairs of Govt. of India, for meeting all up-gradation/skill development needs of Minority Communities.

• MANAS provides an all India level training framework, based upon tie-ups with Local / National / International training organizations (on PPP mode), for imparting training to the Minority population in skill sets that are in line with emerging market demands. 

• The training programme is aimed providing meaningful & sustainable livelihood options in terms of self-employment/ wage employment opportunities with primary focus on self-employment.

Present Business Model

10

Present Business Model • MANAS will be instrumental in providing concessional credit

for Minority Communities after meeting their “Skilling Needs” by providing them training in market determined skill sets/trades, with specific entrepreneurship development programme, for expanding their existing businesses venture and setting up new business ventures through NMDFC.

• MANAS is a multi-dimensional organization, which includes a special vertical for meeting the diverse and specific skill training requirements of the minority communities like identifying, preserving and promoting their traditional arts, crafts and vocations, which are getting phased out due to globalization and rapid technological changes.  For this purpose, MANAS is in the process of establishing “Research Chairs” for process and product documentation before launching minority specific skill development programmes.

Cumulative Disbursement is Rs.2943.13.63 crores to over 10.69 lac beneficiaries against paid up capital of Rs.1208.93 crores.

Disbursement under Term Loan is Rs.1966.28 crores, Education Loan is Rs.122.82 crores & Micro-Finance scheme is Rs.854.03 crores.

Loan outstanding is Rs. 1300 crores. Repayment percentage under Term Loan is 86% & 98%

under Micro-Finance scheme. Accumulated Surplus used for credit disbursements –

Rs.292.50 Crores. Cumulative Administrative Expenditure – Rs. 52.00 Crs,

Promotional Exp. (Skill Dev/Marketing Scheme)- Rs. 29.00 Crs & Capital Exp – Rs.9.90 Crs.

Trend of disbursement under Term Loan/Micro-Finance scheme is 60% : 40%.

Performance of NMDFC

11

12

THANK YOU