kmdc.kar.nic.in Swavalambana Margin Money & Arivu Education Loan Scheme : Karnataka Minorities Development Corporation Ltd

Name of the Organization : Karnataka Minorities Development Corporation Ltd
Type of Facility : Swavalambana Margin Money & Arivu Education Loan Scheme
Location: Bangalore

Official Website : https://kmdc.karnataka.gov.in/english

1. ‘Swavalambana’ Margin Money Loan Scheme:
Loan facilities are provided through various Nationalized Banks/Financial Institutions for business, services, industries and agriculture based activities for the maximum project cost upto Rs.1,00,000/-. 20% of the project cost will be sanctioned by the Corporation as Margin Money loan @ 7% interest. Balance is provided by the Banks/Financial institutions. A Subsidy upto Rs.5,000/- is also provided by the Corporation. The Corporation is allocating the physical and financial target based on allocation made in the budget, minority population wise. The District Manager of the concerned district invites the application through newspapers. The received application will be scrutinized and forwarded to the concerned bank for sanction of loan. The concerned bank will verify the feasibility and viability of the project sanction the loan and send the proposal for the release of Margin money loan to the District office. The District Manager will place the proposal before the District Level Committee headed by Chief Executive Officer of Zilla Panchayath, who is the Chairman of the Committee. The Committee will approve the list of beneficiaries and same will be forwarded to the Head Office for release of Margin Money loan and Subsidy to the Bank, for further release of Margin Money loan and Subsidy alongwith Bank portion of loan to the beneficiary.

2. Subsidy Scheme:
Under this Scheme, a subsidy element of 50% of the unit cost or maximum amount of Rs.5, 000/- will be released to the beneficiaries. For who wish to avail loan for Business, Services, and industries, for the unit cost upto Rs.25,000/-, only subsidy of Rs.5,000/- (maximum) will be released and for unit cost above Rs.25,000/- to Rs.1.00 lakh, Subsidy and Margin Money will be released. The Corporation is allocating the physical and financial target based on allocation made in the budget and minority population. The District Manger of the concerned District invites the application through news papers. The received application will be scrutinized and forwarded to the concerned bank for sanction of margin money loan. The concerned bank will verify the feasibility and viability of the project and send the proposal for release of Margin money loan to the District office. The District Manger will place the proposal before the District Level Committee headed by Chief Executive Officer of Zilla Panchayath, who is the Chairman of the Committee. The Committee will approve the list of beneficiaries and forward the proceedings to the head office for release of Margin Money loan and Subsidy to the Bank.

3. Arivu (Education Loan) Scheme:
The Govt. of Karnataka has introduced “Arivu” (Education loan) to help the minority students with financial assistance upto Rs.75, 000/- per year till the completion of the course, for the professional courses like Medical, Engineering, Dental, Master Degree Courses, Diploma Courses, Nursing, B.Ed, D.Ed, and ITI. The loan has to be repaid after completion of the course with 2% interest. The Corporation allocates the physical and financial target based on allocation made in the budget and minority population. The District Manger of the concerned District invites the application through newspapers. The received application will be scrutinized and the same will be placed by the District Manager before the District Committee headed by Chief Executive Officer to Zilla Panchayath, who is the Chairman of the Committee. The Committee will select the beneficiary and forward the proceedings to the head office for release of loan to the beneficiary.

4. Ganga Kalyana Scheme:
A. Community Irrigation:
The beneficiaries should be small and marginal farmers and those who have totally 8 acres of land comprising 3 beneficiaries, will get 2 borewells and 15 acres of land comprising of 5 beneficiaries, will get 3 borewells and each beneficiary should have 2 to 3 acres of land.

Borewells are drilled underground, submersible pumpsets will be installed and energisation for the borewell will be done by the Corporation. This scheme is entirely a subsidy scheme.

B. Individual Borewell:
On the selection by the Competent Authority, under individual borewell scheme, for the beneficiary holding 2 to 5 acres of land, one borewell will be drilled and pumpset will be supplied. The total expenditure is Rs.1, 00,000/- (Grant of Rs.86, 000/- & loan of Rs.14, 000/-), this includes Energisation charges. The Corporation is allocating the physical and financial target based on allocation made in the budget and minority population. The District Mangers of the concerned District invites the application through newspapers. The received application will be scrutinized and District Manage will place the proposal before the Taluq committee headed by concerned MLA is the Chairman of the Committee. The Committee will select the beneficiary and forward the proceedings to the head office.

5. Shramashakthi Scheme:
Under this scheme, the minority artisans will be trained to upgrade their Artistic and Technical skill and also loan upto Rs.25,000/- (maximum) will be provided at lower rate of interest to improve their business. The Corporation is allocating the physical and financial target based on allocation made in the budget and minority population. The District Managers of the concerned District invites the application through news papers. The received application will be scrutinized and District manager will place the proposal before the District Committee headed by Chief Executive Officer of Zilla Panchayath, is the Chairman of the Committee. The Committee will select the beneficiary and forward the proceedings to the head office for release of loan to the beneficiary.

6. Land Purchase Scheme (New Scheme):
Under this scheme, the Corporation will purchase the agricultural land and this will be given to the poor landless minorities farmers in the rural areas. 2 acres of Dry Land or 1 acre of wet land will be distributed to each beneficiary. Each acre of land costs Rs.30,000/-. The cost of land will be treated as 50% loan and 50% subsidy to the beneficiaries. The loan has to be repaid in 4 yearly installments @ 7% interest per annum. The Corporation is allocating the physical and financial target based on allocation made in the budget and minority population. The District Managers of the concerned District invites the application through newspapers. The received application will be scrutinized and District Manager will place the proposal before the District Committee headed by Deputy Commissioner of the concerned District who is the Chairman of the Committee. The Committee will select the beneficiary.

7. National Minorities Development & Finance Corporation’s Direct Loan Scheme:
The National Miniorities Development & FInanace Corporation, New Delhi was establised at Central level during 1994. The Main object of this Corporation is to uplift the poor religious minorities financially throughout India. NMDFC is extending loan to the religious minorities throughout its SCAs (State Channelising Agencies). In Karnataka, Karnataka Minorities Development Corporation is the SCA. The NMDFC releases the loan @3.5% to the SCAs as against the Govt. Guarantee provided by the State Government.

The loan will be released for the schemes approved by NMDFC. The Corporation is releasing 85% of the project cost as NMDFC share, 10% share of the project cost from KMDC and balance 5% of the project cost has to be borne by the beneficiary. 6% interest per annum is being charged by the Corporation for the loan released. The District Managers of the concerned District invites the application through newspapers. The received application will be scrutinized and District Manager place the proposal before the District Commitee headed by the Chief Executive Officer of Zilla Panchayath, who is the Chairman of the Commitee. The Commitee will select the beneficiary and forward the proceedings to the head office for release of loan to the beneficiary.

Loan Application Forms: https://kmdc.karnataka.gov.in/english