MFDII provides loans for productive purposes and also short-term loans to meet social obligations at competitive interest rates. Normal loan size per individual ranges from Rs.5,000/- to Rs.50,000/-. For development institutions, NGOs the maximum loan size is up to 5 lakhs against proper guarantee. NGOs and individuals are eligible to borrow from the fund 3 months after they become MFDII members. The board of directors meets every 3 months to decide on loan applications.