If you are a business owner belonging to a minority, loans for business are available at concessional interest rates and with longer tenures. This can help ease your repayment and enable you to secure the growth of your business.
You can apply for a business loan for minorities in India if you are a Sikh, Muslim, Buddhist, Christian, Zoroastrian or Jain as per the MC (National Commission for Minorities) Act, 1992. Read on to learn more about business loans for minorities.
The interest rates for these loans will vary depending on numerous factors. Since the rates affect your borrowing costs, being aware of the latest rates is crucial in comparing and choosing the right option.
Given below is an overview of minority loan interest rates for different schemes:
Minority Loan Type |
Credit Line |
Maximum Available Limit (₹) |
Interest Rates |
Term Loan |
Credit Line-1 |
₹20 Lakhs |
6% p.a. |
Credit Line-2 |
₹30 Lakhs
|
8% p.a. (2% concession for women applicants) |
|
Virasat Scheme |
Credit Line-1 |
₹10 Lakhs
|
5% p.a. for men and 4% p.a. for women. |
Credit Line-2 |
₹10 Lakhs |
6% p.a. for men and 5% p.a. for women |
|
Micro Finance Loan |
Credit Line-1 |
₹1 Lakh
|
7% p.a. |
Credit Line-2 |
₹1.5 Lakhs |
10% (2% concession for female applicants) |
Disclaimer: The rates mentioned above are subject to change.
Remember, the approval of your loan will depend on numerous factors, including your funding requirements and monthly income.
If you want a minority loan, apply online or offline after checking your eligibility. Different schemes have different eligibility. However, there are some common criteria. These common requirements include:
Applicant should belong to the notified minority community
Should not be covered under other government concessional schemes
In some schemes, the preference would be given to individuals belonging to the group for whom the scheme is curated.
For example, under the Virasat scheme, the preference would be for artisans who participate in the Hunar Haat exhibitions. You can contact your SCA for further details.
To apply for a business loan for minorities, you can visit the official NMDFC website. Once there, you can navigate to the schemes sections and enter your loan type and your area. This will give you the application form, the documents required, and the SCA information.
Term loans, micro-finance, and virasat are some minority loan schemes you can choose from. All these are curated for different groups of people with different ventures.
People belonging to the notified minority community and having an annual income as per the requirements can apply for these schemes.
These schemes are available through State Channelising Agencies (SCAs), which offer funding in association with the NMDFC.