Telangana State Minorities Finance Corporation: 1.6 lakh apply, 3,000 get loans

Hyderabad: The Telangana State Minorities Finance Corporation was established to provide loans to members of minority communities and has been allocated a budget of Rs 100 crore. It has received a larger than expected response, with 1.6 lakh applicants. Of these, only five per cent or 3,000 people have been able to avail the loan, which has aggrieved many. The expectation was that around 20,000 people would apply for loans and hence the allocation of Rs 100 crore was deemed sufficient.

Corporation managing director B. Shafiullah said there were some changes in the policy of issuing loans. The cap on subsidies and loans was changed after the huge rush. Those who are applying for a loan of '1 lakh will get a subsidy of 80 per cent, and those who apply for loans of Rs 3-5 lakh will get a subsidy of 60 per cent. Small-scale industries that need huge loans can get up to '10 lakh with a subsidy of 50 per cent on the principal. This basically means that the corporation would pay the subsidy amount while the beneficiary pays the remaining part.

Mr Salim Qureshi, who owns a fruit shop, said, “The banks always have some excuse for us. There are many like me who have applied, but are tired now of running after banks. Now the issue of demonetisation has also crept in. With banks themselves cash-strapped, we are unable to get the loans.” “Many daily wage workers are forced to borrow from private moneylenders. But even they are unable to provide us money now due to demonetisation,” said Zakir Ahmed, a tailor.