Mere 5 to 10 percent of applications approved
VAIBHAV PARWAT
Chhatrapati Sambhajinagar: The financial development corporations, established to provide financial aid to the unemployed in backward sections of society, are facing significant challenges due to a lack of coordination with banks. Shockingly, only a mere 5 to 10 percent of the target loan cases were approved within a year, leaving applicants in a state of uncertainty with no response received.
Out of the targeted 120 applications of the backward class development corporation for loans, a mere three made it to the banks, with only ten of them receiving approval. Unfortunately, the approved loans were not deposited, further exacerbating the frustrations of the applicants. Under the Mahatma Phule backward classes development corporation, only one out of the targeted 90 applications was successful, and 24 awaiting a response from the office.
The seed capital programme faced similar hurdles. Although 13 applications were approved, amounting to loans of Rs 25.59 lakh, a staggering 70 applications are still pending with the banks. Similarly, in the grant category, only 14 out of the targeted 100 applications were approved, with 74 applications pending with the bank. Vasantrao Naik Mahamandal reported no applications for seed capital programme, while out of the targeted 200 direct loans, 104 applications were approved, but only 38 people received the funds.
Proposals are incomplete
Banks have received proposals from the financial corporations, but the corporation officials failed to attend meetings, resulting in a lack of loan approvals. Many proposals are incomplete, lack document completion, and submit proposals only at the end of the year, said SBI bank manager Mihir Sahoo.