Thanks to bifurcation of the State, it is raining money for loan-seekers. Applicants at the Andhra Pradesh State Minorities Finance Corporation (APSMFC) are laughing all the way to the bank as money pours in their accounts. For the first-time in its history, the corporation has released Rs.26.80 crore in the last three days alone. On Monday, it released another Rs.7.69 crore.
Set with the deadline of May 30, the corporation is working overtime to clear the loans. It has been allocated a budget of Rs.100 crore under the bankable scheme and given a physical target of 26,620 beneficiaries. However, the corporation has received only Rs.75 crore till date. The fourth quarter grant of Rs.25 crore is due. But none is sure whether it will be released or not with the bifurcation process in full swing.
In the first phase the corporation sanctioned Rs.11.12 crore covering 4,175 beneficiaries. Thereafter, the election code came into force and for one month the loan sanction process came to a halt. It was only four days ago that the government permitted the corporation to resume the scheme. To ensure that the funds do not lapse, officials have been working on a war-footing to sanction the loans.
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Right now the corporation is sanctioning loans to applicants from all over the State. But any change in policy of new governments might stall the process, it is feared. Unfortunately only 50 per cent of the applicants have completed the documentation process which is necessary for the banks to release its share. “The beneficiaries will be solely responsible if they delay in completing documentation. On our part we are ready to release the subsidy,” says Prof. S.A. Shukoor, V-C & MD, Minorities Finance Corporation.
Prof. Shukoor is, however, confident of completing the target as only Rs. 6 crore are left to be released. Executive Directors of the corporation are asked to motivate the applicants to hasten their documentation process. Under the scheme, a maximum loan of Rs. 3 lakh with 50 per cent subsidy is sanctioned for setting up small units by minorities.