Banks in Punjab told to speed up disbursal of self-employment loans

Chandigarh, Dec 22 (SocialNews.XYZ) Punjab Finance Minister Harpal Cheema and Member of Parliament Vikramjit Singh Sahney on Friday reviewed the progress of sanctioning and disbursement of loans under various schemes for self-employment with state heads of 40 banks here.

The banks were asked to present their performance for giving loans, among other schemes, under Mudra Scheme for providing bank loans up to Rs 10 lakh for micro enterprises and the PM Employment Generation programme for loans up to Rs 50 lakh in manufacturing, business and service sector.

Sahney pointed out that there was gross underutilisation of the loan amounts for various schemes in many districts of Punjab, and banks should spur up all their branches to sanction and disburse loans to skilled workforce, women self-help groups and marginal farmers expeditiously.

He also stated that in Ludhiana district 632 applications for self-employment by ITI graduates were submitted but only 52 loans have been sanctioned. He added there are 6,300 bank branches in Punjab and even if each bank sanctions five loans each, there should be a minimum 30,000 beneficiaries.

Finance Minister Cheema reiterated that performance of the banks in disbursing the loans for self-employment and startups is not meeting targets and the state government would take a serious view if banks don’t sanction loans to economically weak applicants.

He also said a special task force under chairmanship of the Secretary Finance would be made to review the progress in this regard on a periodic basis.

Source: IANS