TSMFC swamped by response
Telangana Minority Finance Corporation (TSMFC) is overwhelmed by the huge response to the bank-linked subsidy scheme for small businesses offered by it. The TSMFC has received 1.2 lakh applications from across Telangana State in 50 days. Strangely, State government has sanctioned funds only for 8,000 beneficiaries during this financial 2015-16.
Hyderabad: Telangana Minority Finance Corporation (TSMFC) is overwhelmed by the huge response to the bank-linked subsidy scheme for small businesses offered by it. The TSMFC has received 1.2 lakh applications from across Telangana State in 50 days. Strangely, State government has sanctioned funds only for 8,000 beneficiaries during this financial 2015-16.
With the number of applicants expected to cross 1.5 lakh by March 15, the last date for submission, it is a race against time for officials in finalising modalities and shortlisting eligible candidates in a transparent manner. The budget allocated this year to implement the scheme is a mere Rs 87.40 crore.
The Corporation has already urged Chief Minister K Chandrashekar Rao to sanction another Rs 100 crore at least to meet this year's target of 8,000 applications. The deadline for applications was earlier February 15, but was later extended to February 28. It was extended again to March 15, the number of applications had already crossed 80,000.
Even as some Corporation officials remained apprehensive about providing succour to eligible candidates, the government asked TSMFC to extend the date of applications to March 15. “The bank has asked TSMFC officials to process 3,000 applications from the city. We have received 65,000 applications as of March 5.
What should we do? I think thousands of aspirants may lose heart if they do not qualify for the loan. I sincerely hope that the State government would review guidelines in order to reach out to more number of people. This is a good scheme and we want government to allocate more funds,” said a source in the Corporation.
Till last year, the subsidy provided under the scheme was 50 per cent for a loan of Rs 2.5 lakh. But for the current financial year, the government has decided to provide subsidy of 80, 70 and 60 percent under the “slab system” for loans starting from Rs 1 to Rs 10 lakh. An official said applicants who have opted for Rs 1 lakh loan would get a subsidy of 80 per cent.
Similarly, subsidy for a loan between Rs 1 lakh and Rs 2 would be 70 per cent and for those who want a loan between Rs 2 lakh and Rs 10 lakh, the subsidy is 60 per cent. Telangana State Minority Finance Corporation MD B Shafiuallah said the issue was brought to the notice of the Chief Minister during a recent meeting.
“We are hoping that at least half of the applications are in genuine need of the loan. There is a proposal from government to increase budget for the scheme by another Rs 150 to Rs 200 crore,” he said.