The equity contribution from Government of India, together with contribution from State Governments and individuals/institutions and also the recovery of loans from beneficiaries will be spent for providing term loans and micro finance through State Channelizing Agencies (SCAs) and for providing micro finance through NGOs. NMDFC also provides educational loans and has promotional schemes like vocational training etc.

As per the MoU, 87,984 beneficiaries are to be covered during 2010-11. During this period, the budgetary provision of Rs.115 crore will be released to NMDFC by way of equity contribution of the Central Government.

NMDFC's schemes are targeted for economic upliftment of people from minority communities living below the poverty line through self-employment.

BACKGROUND

NMDFC is a not-for-profit company, registered under Section 25 of the Companies Act. with share contribution from Government of India (65%), State Governments (26%) and individuals / institutions (9%). It provides financial assistance to people belonging to minorities living below double the poverty line for self-employment. NMDFC is dependant on Central equity contribution. The enhanced authorized share capital will enable the Central Government release its full budgetary provision of Rs. 115 crore towards equity of NMDFC in 2010-11.