Date:11/05/2003 URL: http://www.thehindu.com/2003/05/11/stories/2003051100481300.htm

National

Soft loans for uplift of BCs

By Our Staff Correspondent

NEW DELHI MAY 10. More than 11.5 lakh beneficiaries from the Scheduled Castes, OBCs, minorities and the disabled have been provided soft loans for Rs. 2,439 crores, at a concessional rate.

The loans have been advanced for income-generating schemes in agriculture and allied activities, small business, service sector and transport.

Stating this at a Parliamentary Consultative Committee meeting here on Friday, the Union Minister for Social Justice and Empowerment, Satyanarayan Jatiya, said changes had been brought about in the lending policies so that a larger number of target groups belonging to weaker sections could be provided institutional finance at a concessional rate.

The ceiling of loan amount under micro-credit schemes had been raised to Rs. 25,000 from Rs. 10,000. The interest rate had also been reduced to 5 per cent from 6 per cent under this scheme.

Similarly, the interest rate under `New Swarnima' scheme for women of backward classes had been fixed at 4 per cent a year.

Calling upon the States to make the State Channellising Agencies (SCAs) more effective as most of the loans in the states were advanced through them.

Participating at the meeting, the Members of Parliament suggested that a meeting of the Welfare Ministers of all States be called to review the system of providing financial help to the weak sections that would also send a strong message that the Centre was keen on helping them through institutional financing and would also ensure proper use of Special Central Assistance funds under the Special Component Plan.