Jammu Kashmir Emerges Fourth-highest Recipient of NMDFC Funds with Rs 573 Cr | Kashmir Life

SRINAGAR: The Government of India has told the Lok Sabha that Jammu and Kashmir has received Rs 573.85 crore under the National Minorities Development and Finance Corporation (NMDFC) since the inception of the scheme, making it the fourth-largest recipient in the country after West Bengal, Kerala and Tamil Nadu.

Replying to Starred Question, Minority Affairs Minister Kiren Rijiju said the UT has recorded 52,841 beneficiaries under various concessional credit schemes of the NMDFC. Of the total funds received, Rs 564.27 crore was disbursed as term loans supporting 47,063 individuals, while Rs 9.58 crore was provided through microfinance to 5,778 members of self-help groups.

The figures tabled in the House show that Jammu and Kashmir stands ahead of states such as Rajasthan, Uttar Pradesh, Maharashtra and Gujarat in cumulative NMDFC utilisation. Only West Bengal, Kerala and Tamil Nadu have received larger allocations. In comparison, Ladakh received Rs 1.02 crore, supporting just 68 beneficiaries.

Rijiju placed detailed data sheets before the House listing the funds released to each State and Union Territory. The Minister said the NMDFC’s mandate is to provide concessional credit to “backward sections” among the six notified minority communities and that the schemes are implemented through State Channelising Agencies, Punjab Gramin Bank and Canara Bank.

The government said the concessional credit framework operates under two income slabs. Under Credit Line–1, families with an annual income of up to Rs 3 lakh are eligible, while Credit Line–2 extends support to families with incomes up to Rs 8 lakh. Beneficiaries may access term loans of up to Rs 20 lakh under the first credit line and up to Rs 30 lakh under the higher-income window at interest rates that are lower for women applicants.

Education loans of up to Rs 20 lakh for courses in India and up to Rs 30 lakh for courses abroad also form part of the NMDFC’s offerings. The Virasat scheme, which supports traditional artisans with loans of up to Rs 10 lakh for tools, equipment and working capital, has been designed to strengthen craft-based livelihoods. Microfinance, routed through women’s self-help groups, remains a key mechanism for reaching beneficiaries in remote settlements and urban slums.

The Centre said State-wise and year-wise figures for the last five years have been made available in Annexure-C. According to officials, Jammu and Kashmir’s high utilisation reflects both persistent demand for self-employment financing and the wide presence of craft, trade and service-sector livelihoods in the region.