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Banks snail pace hits APSMFC scheme

Banks snail pace hits APSMFC scheme
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Highlights

Changing guidelines, limited deadlines and lack of coordination between the then AP State Minorities Finance Corporation (APSMFC) and banks have reduced the number of government beneficiaries of economic essistance (Bankable) to just 10 per cent of the target for the year 2013-14. Various banks in the City had disbursed 10.79 per cent of finance (subsidy) to only 11.4 per cent of beneficiaries for the year 2013-14.

minority entrepreneurs missing out on govt help only 10 per cent target achieved in 2013-14

Hyderabad: Changing guidelines, limited deadlines and lack of coordination between the then AP State Minorities Finance Corporation (APSMFC) and banks have reduced the number of government beneficiaries of economic essistance (Bankable) to just 10 per cent of the target for the year 2013-14. Various banks in the City had disbursed 10.79 per cent of finance (subsidy) to only 11.4 per cent of beneficiaries for the year 2013-14.

The target was set at Rs 22.51 crore for 5,991 beneficiaries, but only Rs 2.43 crore were cleared to only 684 beneficiaries by April 16, 2015, the date extended by the Telangana State government for completing the application process for the year 2013-14. Under the scheme the government provides 50 percent subsidy, Rs 1 lakh being the maximum amount, while the beneficiary has to repay the remaining as bank loan.

The activities supported by the government, include agriculture allied, industries, small business, services and transport, which can be taken up in collaboration with banks at cheaper rate of interest for bank share of loans. The beneficiaries should be from Minority Community and between the age 18 and 45 years.

According to official document, amongst 25 banks, Oriental Bank of Commerce, Indian Overseas Bank, UCO Bank, Corporation Bank, Allahabad Bank, Bank of Maharastra and State Bank of Mysore failed to process the applications, even though the ‘consent’ was received from APSMFC. One of the main reasons believed for the change in guidelines by the previous government, under N Kiran Kumar Reddy, it created a kind of confusion amongst officials and applicants.

Adding to the “chaos”, the government only gave two to three weeks of time for the applications during 2013. The age limit which was between 18 to 45 years was changed to 21 to 40 by the then government. Due to lack of staff in the department for enquiry and verification, the process was delayed further. The financial year of 2013-14 concluded with several applications which are still pending. The Telangana government which came to power later took up the matter and released a GO in December 2014 for disbursal to the remaining applications.

But the banks could only process 10 percent of the targets, even though date was extended to April 16, this year. “There are constraints, but limited deadlines for applications are discouraging people to avail government schemes,” said Syed Amin Jafri, MLC. Similar is the case with the AP State Christian Minorities Finance Corporation in the Hyderabad District. Out of 494 targeted beneficiaries only 130 benefitted, while out of Rs 1.48 crore only Rs 40 lakhs were disbursed.

By:Md Nizamuddin

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