✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now! Check Eligibility

The National Minorities Development & Finance Corporation (NMDFC) provides business loans to promote self-employment among the minority communities such as Muslims, Christians, Buddhists, Jains, and Parsis.


The Corporation, under the Ministry of Minority Affairs, also aims to promote the economic development of backward sections from minority communities.

Types of Minority Business Loans Available in India

Take a look at various loan schemes NMDFC provides:

1. Term Loan Scheme

Under this scheme for minorities, NMDFC finances up to 90% of the project cost of up to ₹30 Lakhs. You have to bear the remaining cost along with the State Channelising Agencies (SCAs). 

The following are the eligible sectors of commercially viable and technically feasible businesses under the Term Loan scheme:

  • Agriculture and allied

  • Artisans and traditional occupations

  • Small businesses 

  • Technical trades

  • Transport and services

2. Virasat Scheme

Virasat scheme is part of the Term Loan facility designed to cater to the artisans’ working and fixed capital requirements. Artisans from minority communities can get a loan amount of up to ₹10 Lakhs. NMDFC finances 90% of the loan amount with a minimum 5% contribution from the beneficiary.  

3. Micro Finance Scheme

Self-Help Groups (SHGs) of up to 20 members can get up to ₹30 Lakhs under this scheme . It lays a special focus on minority communities’ women-led groups in remote rural areas and rural slums. In other words, each member of the SHGs can get up to ₹1.5 Lakhs as loan amount.

Read More

Interest Rates of a Business Loan for Minorities

The NMDFC provides business loans to minority sections through SCAs under two credit lines. 


The Credit Line-1 benefits are available to those having an annual family income of up to ₹98,000 and ₹1.2 Lakhs in rural and urban areas, respectively. On the other hand, it extends the Credit Line-2 benefits to beneficiaries with an annual family income of ₹8 Lakhs.


Here are the interest rates and maximum amount provided by NMDFC on different business credit facilities under Credit Line-1 and Credit Line-2 categories:

Business Loan Scheme

Credit Line

Maximum Loan Amount

Rate of Interest (p.a.)

Term Loan Scheme

Credit Line- 1

₹20 Lakhs


Credit Line- 2

₹30 Lakhs

8% to male beneficiaries 

6% to female beneficiaries

Virasat Scheme

Credit Line- 1

₹10 Lakhs

5% to male beneficiaries 

4% to female beneficiaries

Credit Line- 2

₹10 Lakhs

6% to male beneficiaries 

5% to female beneficiaries

Micro Finance Scheme

Credit Line- 1

₹1 Lakh per individual and up to ₹20 Lakhs for Self-Help Groups (SHGs with up to 20 members)


Credit Line- 2

₹1.5 Lakhs per Individual and up to ₹30 Lakhs for Self-Help Groups (SHGs with up to 20 members)

10% to male beneficiaries and 8% to female beneficiaries

Disclaimer: The interest rates and maximum loan amount provided above depend on the NMDFC’s discretion. Check the interest rate and loan amounts on the official NMDFC website before applying.

Eligibility Requirements for Business Loans for Minorities

You need to qualify for the following eligibility criteria to avail of loan schemes from NMDFC:

  • The applicant must be from notified minority communities under the National Commission of Minorities Act, 1992

  • The annual family income of the applicant must not exceed ₹8 Lakhs

Business Loan for Minorities FAQs

What is the maximum repayment tenure for the Term Loan and Virasat schemes?

The maximum repayment duration on Term Loan and Virasat schemes extends up to 5 years.

What is the moratorium period available to artisans under the Virasat Scheme?

NMDFC provides a moratorium period of up to 6 months on loan repayment under the Virasat scheme. 

What is the repayment tenure for loans under the Micro-Finance facility for SHGs?

SHGs can choose a repayment tenure of up to 3 years on the Micro Finance lending facility.

What is a minority business loan?

A minority business loan is specifically tailored for businesses owned by individuals belonging to minority groups.

What are the documents required for a minority business loan?

Documents required for a minority business loan include:

  • Proof of minority status

  • Business plan

  • Financial statements

  • ITR filings

  • Legal business and personal documents

  • Information on business assets


Before applying for a minority business loan, check with your lender for any additional requirements they may have.

What are the benefits of a minority loan?

Here are some benefits of a minority business loan:

  • Increased access to capital

  • Financial support for minority entrepreneurs

  • Overall economic empowerment


These loans contribute to reducing economic disparities and fostering diversity in the business landscape.

Loan Offer
Download App