KERALA STATE MINORITIES DEVELOPMENT FINANCE CORPORATION LTD.

(A Government of Kerala Undertaking, under the Dept. of Minority Welfare)

The Kerala State Minorities Development Finance Corporation Ltd. (KSMDFC) was established on 14 February 2013 and registered under as a Non Profit company under the Companies Act 1956 on 22 March 2013. The main objective of the company is to promote welfare and economic development of religious minority and recommended communities, as notified by the Central and State Government from time to time, by providing financial assistance by way of loans, advances, guarantees, securities and other financial aids subject to the guidelines as laid down by Government of India. As per the national commission of Minorities Act, 1992 the notified minority communities in the State are Muslims, Christians, Sikhs, Buddists and Parsis. Recently Jains are also included in the list by the Government of India.

The KSMDFC is providing concessional finance for self-employment, micro credit and for other activities.  It also introduced welfare schemes to eligible beneficiaries belonging to minority communities.  As per the recommendation of the National Commission for Minorities (NCM), the NMDFC (National Minorities Development and Finance Corporation, New Delhi) has identified the KSMDFC as its State Channelizing Agency in the State of Kerala to implement its schemes in the state.

SCHEMES OF NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION, NEW DELHI

SCHEME 1 & 2. SELF EMPLOYMENT SCHEME FOR MINIORITIES

The main objective of the scheme is to promote welfare and economic development of religious minority and recommended communities for setting up self-employment ventures. The scheme is for individual beneficiaries and beneficiary contribution need not be collected from the beneficiary, instead the beneficiaries are expected to utilize the amount along with the loan amount received from the KSMDFC for this purpose.  The maximum loan amount that can be disbursed under this scheme is limited to 95% of the project cost or the amount requested by the beneficiary whichever is lower.  The Corporation can assist a wide range of income generating activities under the following broad sectors

1.Agriculture and Animal Husbandry

2. Fishing

3. Traditional, Village and Cottage Industry

4. Technical Trades

5. Small Business

6. Transport Services

7. Professional Service

Scheme 3 & 4: EDUCATIONAL LOAN SCHEME FOR MINIORITIES
(NMDFC SCHEME)             

This scheme is for studying technical, professional and skill development  courses of durations not exceeding 5 years. For Skill Development Programmes, the minimum periods shall be 1 year. The admission of the candidate in the course shall be through a merit-cum-selection process

Means of Financing:

Beneficiary contribution need not be collected from the beneficiary; instead the beneficiaries are expected to utilize
the amount for the purpose along with the loan amount received from the KSMDFC.  The maximum loan amount that can be disbursed under this scheme is limited to 95% of the cost or the amount requested by the beneficiary, whichever is lower. 

The student shall submit the details of the admission fee, tuition fee and other fees to be paid by the student in the college in each year certified by the Principal or Head of the institution. The admissible expenditure includes admission fee, tuition fee, exam fee and hostel expenses only. The loan is available to students perusing approved full time regular courses only.  The college/institute that offering the course should be a recognized institution by the Central/State Government or by an appropriate authority such as AICTE/MCI etc.

Mode of release: The installment amount will be paid by cheque/DD/NEFT in the name of institution. The parent will be the co-borrower of the loan amount.  For availing subsequent installments, the utilization of previous installment and completion of the previous years of study is compulsory.  A certificate in this regard shall be obtained from the head of the institution and submitted before the Corporation.

Repayment Period: The repayment will start after 6 months from the completion of the course or immediately after getting job on completion of the course, whichever is earlier.  Even if the student has not successfully completed the course in the final year or he/she is perusing for higher studies, the repayment will start as per schedule i.e, after 6 months of the end of the course, for the loan is availed.

The applicant should not be a beneficiary under any other educational Scheme of NMDFC or other financial institutions.

Scheme 5 & 6:    MICRO FINANCE
SCHEME                    

                                                                         CREDIT
LINE 1                                                CREDIT LINE 2

The scheme is implemented through Non-Governmental Organizations (NGOs) having prior experience of channelizing micro credit.

ELIGIBILITY CRITERIA FOR NGOs

 a) The applicant NGO should have been registered for at least three years and it should have good reputation /
credibility of work in the area of its operation.

 b) The bye-laws of the NGO should have an enabling clause to borrow funds for the purpose of providing loans to the poor.

 c) It should have broad-based objectives, serving the social and economic needs of the weaker sections of the
society. Preference will be given to organizations working for the welfare of minorities.

d) It should have necessary flexibility, professional competence, basic financial management capability and organizational skills to implement lending programs. It must have outreach services in the operational areas.

e) Its office bearers should not be elected members of any political party.

f) It should have a proper system of maintaining accounts. Its accounts should have been audited & published for the last three years without any serious irregularities observed in the audit.

 g) It should be running on sound financial lines and should not have incurred losses during the last three years.

 h) 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 of the order of 90% and above.

SCHEMES OF KERALA STATE MINORITIES DEVELOPMENT  FINANCE    CORPORATION

Scheme 7: SELF
EMPLOYMENT SCHEME FOR MINIORITIES  

All other conditions are same as in the Scheme 1 & 2

Scheme 8:
EDUCATION LOAN (PARENT PLUS)

The applicant for the loan is  parent.  The student will be the co-borrower for the loan. Under this scheme an amount up to Rs.15.00 lakhs are considered for financing for studying technical, professional and skill development courses  of durations not exceeding 5 years duration within India or Aboard. The maximum loan amount that can be disbursed in a year is limited to Rs.10 lakhs. The total loan amount

Rs.15.00 lakhs may be divided equally as per duration of the course subject to 90% of course fee

Beneficiary contribution need not be collected from the beneficiary, instead the beneficiaries are expected to utilise the amount along with the loan amount received from the KSMDFC.  The maximum loan amount that can be disbursed under this scheme is limited to 90% of the cost or the amount requested by the beneficiary, whichever is lower. The student shall submit the details of the admission Fee, tuition fee and other fees to be paid by the student in the college in each year certified by the Principal or Head of the institution.

In the case of abroad study confirmed admission in the intended course is the pre-requirement for availing the loan amount.  Applications can be submitted in anticipation of the admission. The admissible expenditure includes admission fee, tuition fee and exam fee and hostel expenses only. The applicant should have obtained admission for any full-time professional/Technical /Skill development Courses. Distant education/ Part-time programmes are also not covered under this scheme.

The college/institute that offering the course should be a recognized institution by the Central/State Government or by an appropriate authority such as UGC/AICTE/MCI etc.

Mode of release: The installment amount will be paid by A/c payee cheque in the name of educational institution. The parent will be the borrower of the loan amount. For availing subsequent installments, interest upto that period to be paid, utilization of previous installment and the completion of the previous years of study is compulsory.  A certificate in this regard shall be obtained from the head of the institution and submitted before the corporation to avail the subsequent installments. The repayment will start after 3 months from the last installment released. Even if the student has not successfully completed the course in the final year or he/she is perusing for higher studies, the repayment will start as per schedule i.e. after 3 months of the loan is availed. 

Scheme 9: BUSINESS DEVELOPMENT LOAN FOR
MINIORITIES (KSMDFC SCHEME)-

 The maximum loan amount that can be disbursed under this scheme is limited to 95% of the project cost or the amount requested by the beneficiary whichever is lower. 

Scheme 10: PRAVASI LOAN SCHEME

The scheme is for individual beneficiaries who are returned from foreign countries and decided to settle in Kerala by starting a self employment venture.   The application for pravasi loan may be made within one year of return from foreign countries by exit visa. Projects costing up to 10.00 lakhs are considered for financing under this scheme.

All other conditions are same as in the Scheme 1 & 2

Scheme 11: VISA LOAN SCHEME  (KSMDFC SCHEME) FOR
MINORITIES TO FIND JOB IN FOREIGN COUNTRIES

The scheme is for individual beneficiaries who are planning to find a job in foreign countries.  The applicant should produce a valid passport and visa for availing the loan.  The applicants spouse/father/mother/ brother/ sister shall be the co-borrower along with the applicant.  The maximum loan amount under this scheme is Rs.3.00 lakhs.

Beneficiary contribution need not be collected from the beneficiary, instead the beneficiaries are expected to utilise the amount along with the loan amount received from  KSMDFC.

Scheme 12: MULTI PURPOSE LOAN FOR EMPLOYEES

This loan scheme is meant for the last grade servents working in State/Central Government, Govt. autonomous bodies, public sector undertakings, govt. companies and co-operative institution of repute. The objective of the scheme is to financially help the employees for their different type of needs like purchase of vehicle, consumer durables, medical treatment of the family members, education of children, marriage of daugheter etc. Supporting documents  to be submitted for availing the loan.

Loan amount will be released in one/two installments only based on the project undertaken.  Subsequent installments will be released only after producing utilization of the previous installments.

Scheme 13:
HOUSING LOAN SCHEME FOR MEMBERS OF MADRASA TEACHERS WELFARE FUND

The KSMDFC is implementing an interest free Housing Loan Scheme for the Madrasa Teachers, who are members of the Madrasa Teachers Welfare Fund. As a financial Institution registered under the Indian Companies Act running without any grant-in-aid from Government, we are not in a position to disburse the loan without at least 2% interest for implementing the scheme to meet the administrative cost. This amount shall be met by the Minority Welfare Department from the revenue received or Corpus fund of the Madrasa Teachers welfare Fund.

Detailed Summary of the Loan scheme are as follows

1. Project Cost- (Max per head): Rs. 2.5 lakh

2. Loan component:                         Rs. 2.5 lakh.

3. Beneficiary contribution: Not required.

4. Stages of disbursement:

Stage 1: Rs 1,25,000/- (for foundation, basement, structure etc.)

Stage 2: Rs. 1, 25,000/- (for roof and other finishing works)

Monthly EMI: The monthly EMI Rs. 3000/- for 83 months Rs. 1000/- for the
last month

5. Eligibility:

Applicant shall be a member of Madrasa Teachers Welfare Fund.

The applicant shall be homeless or the home in his name is not suitable for residential purpose and that is certified by Secretary, Local  authority body.

He should have a suitable land in his name or his spouse’s name for construction of a house.  The extent of land shall be minimum 2 cents. Those who do not have land in his/spouse name can also apply for loan subject to the condition that will purchase a minimum extent of land by him before availing the loan amount from KSMDFC.

Scheme 14: GENERAL HOUSING LOAN SCHEME

The scheme is for individual beneficiaries.  Under the scheme the applicant shall be homeless.  He should have suitable land in his name or  spouse’s name for construction of a house.  Those who do not have their own house can also apply for loans subject to the condition that,they will purchase a suitable land before availing the loan. 

Plan should be approved by competent authority not below the rank of an assistant engineer of a local body or Secretary. Estimate should be approved by the licensed supervisor.

The area of the house plan should not be more than 1600sq ft and the estimated cost of construction  should not be more than Rs.20.00 lakhs

The approval of the local body shall be obtained for the construction as per the approved plan

Stages of disbursement

Stage-1 Rs.150000/-(for foundation  and basement)

Stage-2 Rs.250000/-(structure,roofing)

Stage-3 Rs.200000/-(other finishing work)

Scheme 15: LOAN SCHEME FOR MINORITY EDUCATION INSTITUTION

The scheme will aim to provide financial assistance to education institution.  The amount can be used for any development activities which will support the students to have a better education.  Development activities defined as any construction in the institution such as library, class room etc.

Eligibility Criteria

The education institution shall belong to a non-profit company, trust or societies engaged in public charitable purpose for which at least 75% of the members of the society concerned shall belong to minority communities. 

1.The institution must be minimum 3 years old from the date of registration. 

2.Minimum number of students should be more than 300.

3.Strong & committed management.

4.Last 6 months bank statement & balance sheet of last 2 years should be submitted.

5.Copy of society/trust registration bylaws, updated member’s list and minute of the last GBM should be produced.

6.Resolution in the management committee of the trust/society authorizing the manager for availing the loan from KSMDFC. 

Scheme 16: Sumithram – Marriage loan

The Scheme is for individual beneficiaries for the financial aid to the marriage of their daughters. The bride will be the co-borrower for the loan. Under this scheme an amount up to Rs.5 lakhs will be disbursed in two installments. Final installment will be released only after producing the marriage certificate from the church/mosque and original bills related to the marriage.

Scheme 17: Sumithram – Treatment loan

The Scheme is intended to support the patients suffering from critical illnesses lke cancer, heart related diseases, kidney failure and major transplantation of organs. The patient will be the co-borrower for the loan. Under this scheme an amount up to Rs.5 lakhs will be disbursed in two installments. Final installment will be released only after producing original bills related to the treatment.