APSMFC move may bring respite to small traders


Corporation to lend small loans to traders on daily basis

Can small-time traders belonging to the minority community get out of the clutches of private financiers? There are no easy answers. But there can be a way out if the AP State Minorities Finance Corporation (APSMFC) comes forward to lend small loans on a daily basis. For the first time, the State has the highest ever budget of Rs. 1,027 crore for minorities welfare. If a sum of Rs. 100 crore is earmarked for micro finance, then things will start looking up for the petty traders.

The State Minorities Commission has come up with this proposal which it plans to submit to both the Telangana and Andhra Pradesh governments shortly. Commission chairman Abid Rasool Khan feels 10 lakh petty traders will benefit from this and come out of the grip of moneylenders who are playing havoc with their lives.

All that the APSMFC has to do is to reach out to the people by opening its branches in the old city of Hyderabad and also in Muslim-dominated districts such as Nizambad, Mahbubnagar, Karimnagar, Warangal, Kurnool, Guntur and other such places by involving NGOs. It should extend loans of Rs. 1,000 to Rs. 2,000 to the small traders on a daily basis by taking their Aadhaar cards or ration cards as security. The loans should be given on a low interest basis by collecting just the service charges. This will rescue a large number of small-time vendors from the clutches of private financiers who charge 20 to 30 per cent interest per day. Many hawkers, who carry out business on pavements, obtain loan of Rs. 900 in the morning and end up paying Rs. 1,000 in the evening. If they fail to pay up, not only the interest multiplies but they are in for harassment and even physical torture at the hands of goons let loose by the financiers. “All this can come to an end if the APSMFC lends small loans,” says Mr. Khan. Under the bankable scheme, the APSMFC extends maximum loan of Rs. 3 lakh with 50 per cent subsidy for setting up small units by minorities. The Minorities Commission suggests setting up of single room offices in the minority-dominated areas for advancing loans. These offices could also function as centres for all minority related matters.

Why you should pay for quality journalism - Click to know more

Related Topics Andhra Pradesh Telangana
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jan 19, 2020 1:51:30 PM |

Next Story