Virasat Loan Scheme of NMDFC

Description
This scheme is part of the Term Loan scheme and is implemented with the objective to meet Working Capital and Fixed Capital for purchase of equipment/tools/machineries/raw material. Maximum loan of upto Rs.10.00 lacs can be availed under Credit Line-1 & 2. Simple interest of 5% p.a. is charged under Credit Line-1 and at 6% p.a. from Male Artisan under Credit line- 2. Concession of 1% is provided to Female Artisan under both the Credit Lines.

Exclusions
• Other than Six Notified minority communities having annual family income of more than Rs. 3.00 Lakhs under credit line 1 and of more than Rs.8.00 Lakhs under credit line 2.
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Benefits
• Concessional Credit to the beneficiaries among minority communities.

Eligibility Criteria
1. a) The applicant must be Indian and belong to one of the six notified minority communities: Muslim, Christian, Sikh, Buddhist, Parsi, or Jain.
2. b) The annual family income of the applicant shall not exceed:
3. Rs. 3.00 lakh per annum under Credit Line–1.
4. Rs. 8.00 lakh per annum under Credit Line–2.
5. c) The applicant must be an artisan or craftsperson engaged in a traditional occupation (such as handloom, handicraft, metalwork, leatherwork, embroidery, pottery, etc.).
6. d) The applicant should have basic skills or certification in the relevant craft or trade, verified by a competent authority or local body.
7. e) The loan shall be used for procurement of tools, equipment, raw materials, or working capital to enhance production and market linkage.
8. f) Preference shall be given to women artisans and occupational clusters in minority-dominated areas.
9. g) The applicant should not be a beneficiary of any other similar artisan financing scheme at the time of application.
10. h) The beneficiary must possess a valid Aadhaar-linked bank account and minority certificate.
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Application Process
Step 1: NMDFC implements its schemes & programs through State Channelizing Agencies (SCA list: www.nmdfc.org/SCA ) nominated by the respective State Governments & Banking Partners (Presently through Canara Bank & Punjab Grameen Bank).
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NMDFC implements its schemes & programs through State Channelizing Agencies (SCA list: www.nmdfc.org/SCA ) nominated by the respective State Governments & Banking Partners (Presently through Canara Bank & Punjab Grameen Bank).

Required Documents
• Filled Application Form (individual artisan).
• Recent Photograph of the applicant.
• Proof of Minority Status (certificate or self-declaration).
• Income Certificate issued by competent authority.
• Proof of Residence: Aadhaar card, voter ID, ration card, or similar.
• Identity Proof: Aadhaar card/PAN card.
• Proof of Occupation/Skill: Artisan ID card from Development Commissioner (Handicrafts/Handlooms) or Certificate from local artisan cooperative/society/panchayat.
• Project Proposal or Requirement List (tools, machinery, raw materials, etc.).
• Quotation/Estimate from supplier(s).
• Bank Account Proof: Aadhaar-linked bank passbook.
• No Dues Certificate (if previously assisted).
• Affidavit/Self-declaration confirming non-benefit from other similar artisan loan schemes.

Frequently Asked Questions
Q: What is the Virasat Scheme, and who can apply for it?
A: The Virasat Scheme supports artisans and craftspersons from minority communities by providing credit for working capital and fixed capital requirements, such as purchasing tools, machinery, and raw materials.
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Q: What is the maximum loan amount and interest rate under this scheme?
A: Under both Credit Lines, artisans can avail up to Rs. 10.00 lakh.
Under Credit Line–1, interest rates are 5% for male beneficiaries and 4% for female beneficiaries.
Under Credit Line–2, interest rates are 6% for male beneficiaries and 5% for female beneficiaries.
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Q: What is the repayment period and moratorium?
A: A six-month moratorium is allowed, followed by repayment over a period of five years.
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Q: What documents or proof of skill are required to apply?
A: Applicants must provide proof of artisan status, such as an Artisan ID Card issued by the Development Commissioner (Handicrafts/Handlooms), certificate from local craft societies, or evidence of traditional occupation.
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