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 Exclusive State Channelising Agency in the State of Kerala to implement its schemes in the state.
The scheme is for individual beneficiaries. Under this scheme an amount up to 20 lakh are considered for financing for studying professional and job oriented degree courses of durations not exceeding 5 years. The maximum amount per year is limited to 3 lakhs per annum for courses in India and 4 lakhs per annum for courses abroad.
Means of Financing are as follows:
NMDFC contribution 90%
KSMDFC contribution 5%
Beneficiary contribution 5%
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. 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 maximum amount that can be disbursed under this scheme will be Rs. 15 lakh for professional and job oriented degree courses in India and Rs. 20 Lakh for courses abroad.
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 .
Rate of Interest: The interest rate will be 3%.
Mode of release of loans:The installment amount will be paid by A/c payee cheque in the name of Applicant and Co-borrower. (The parent will be the co-borrower of the loan amount). For availing subsequent installments, the successful 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.
Repayment Period: The maximum repayment period is fixed as 60 months (5 years). 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.
1. Applicant must belong to any one of the notified minority communities. (Muslims, X’ans, Sikh, Parcis, Budhha & Jain).
2. The annual family income must be below 81,000/- in rural area and 1,03,000/- in urban area.
3. The applicant should not be a beneficiary under Educational Scheme of NMDFC or NBCFDC or other financial institutions.
4. Age of the beneficiary shall be between 16-32 years as on the date of application.
5. Confirmed admission in the intended course is the pre-requirement for availing the loan amount. Applications can be submitted in anticipation of the admission.
6. The admission of the candidate in the course shall be through a merit-cum-selection process.
7. Selection of beneficiary out of the eligible candidates will strictly be on merit and availability of fund from NMDFC.