Business loans to weaker sections expected to double this fiscal year in Ranchi

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MANISH GUPTA

Ranchi, September 10: Recent changes to the Chief Minister’s Job Creation Program (CMEGP) are expected to double both the number of recipients and the volume of loans advanced to start a business in Ranchi, according to government officials. ‘State.

“Several changes have been made to the job creation program to make it more attractive and accessible,” Ranchi District Social Worker Sangeeta Sharan told lagatar24.com about the program which promotes entrepreneurship among young people. .

The state government has recently changed the rules for commercial loan up to Rs 25 lakh for reserved communities in terms of grant, age criteria, calculation of EMI and spectrum of eligible guarantors during a cabinet meeting last month.

“In 2021-2022, we lent business loans to 435 beneficiaries in Ranchi district. The total advance was Rs 10.87 crore. With the simplification and relaxation of the rules, we expect to double the impact to around 900 beneficiaries and up to Rs 20 crore,” she said.

The state government has prepared to promote the program for Scheduled Tribes, Scheduled Castes, Other Backward Castes, Minorities and Physically Disabled in the age bracket of 18 to 50 with family income annual less than Rs 5 lakh.

“The beneficiaries come from both rural and urban areas. We are seeing a huge demand for loans to purchase vehicles,” Sharan said, adding that previously the loan was only Rs 10 lakh and the grant amount was only Rs 10,000. have been revised.

After the changes, people can take out business loans up to Rs 25 lakh with a 40% subsidy up to a maximum of Rs 5 lakh. The EMI will be calculated after deduction of the grant amount, and the interest rate on the balance will only be 6%.

Ajay Nath Jha, Additional Secretary, Department of Scheduled Tribes, Scheduled Castes, Minorities and Backward Class Welfare, Government of Jharkhand said, “It is a very ambitious project now. From around Rs 39 crore last year, the budget for the CMEGP program has been increased to Rs 100 crore for the current financial year.

Although no guarantor is required for loans up to Rs 50,000 and loans for vehicles, plant and machinery, for other business loans, an equal value of movable or immovable assets will be eligible as of guarantee. The list of guarantors has been greatly expanded.

In the revised guidelines, the list of eligible guarantors includes current and former public officials, active and retired government and semi-public employees, active and retired employees of private companies, and taxpayers.

People who want to avail the commercial loan can apply at any of these offices – District Welfare Office and branches of Jharkhand State Backward Class Finance and Development Corporation, Jharkhand State Tribal Cooperative Development Corporation, Jharkhand State Minorities Finance and Development Corporation and Jharkhand State Scheduled Caste Cooperative Development Corporation.

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