The Share Capital Contribution to
National Minorities Development and Finance Corporation
Crosses Rs. 1,062 Crore
The Share Capital contribution to the National Minorities Development and Finance Corporation (NMDFC), functioning under the aegis of the Ministry of Minority Affairs, stands at Rs. 1,062.52 crore as on 12.10.2011. This is 70.83% of the full Authorised Share Capital of the Corporation which had been increased to Rs. 1,500 crore last year.
Of this actual equity (as on 12.10.2011), Rs. 875.36 crore (89.78%) has been contributed by the Government of India and Rs. 187.15 crore (47.99%) by the various State Governments as well as Union Territory administration. Only an amount of Rs. 55,000/- has been contributed by the Organizations & Individuals having interests in Minorities.
NMDFC was incorporated on the 30th September, 1994 under Section 25 of the Companies Act 1956 with an initial Authorized Share Capital of Rs. 500.00 crore. The Authorized Share Capital of NMDFC has been enhanced from Rs. 500.00 crore to Rs. 1500.00 crore over a period of 17 years.
NMDFC extends loans to individuals belonging to Minorities, living below double the poverty line, for undertaking self employment and income generating activities. The term Loans are provided by NMDFC through the State Channelising Agencies (SCAs) nominated by the respective State Governments. NMDFC also provides Micro-credit to the members of Self Help Groups (SHGs) through Non Governmental Organizations (NGOs) as well as SCAs. The target group of NMDFC includes persons belonging to minorities living below double the poverty line income, which at present is Rs. 55,000 per annum in the urban areas and Rs. 40,000 per annum in rural areas. Eligible persons can obtain loans from the respective SCAs by applying directly to the respective SCAs. NGO can also approach NMDFC directly or to the SCAs for obtaining micro credit to further lend the same to the members of the SHGs belonging to minorities.
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