Maha cabinet clears relaxation in guarantor's conditions in loan schemes of three undertakings

Mumbai, Aug 12 (IANS) The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday approved amendments to the terms and conditions regarding guarantors in loan cases under various schemes of Mahatma Phule Backward Classes Development Corporation, Sant Rohidas Leather Industries and Leather Workers Development Corporation and Sahitya Ratna Lokshahir Anna Bhau Sathe Development Corporation.

The cabinet also cleared the extension of the government guarantee given to these corporations by five years.

According to the government release, this decision will make the process of getting loans more flexible for small entrepreneurs and will give a boost to the settlement of pending cases. Mahatma Phule Backward Classes Development Corporation, Sant Rohidas Leather Industries, and Leatherworkers Development Corporation, Sahitya Ratna Lokshahir Anna Bhau Sathe Development Corporation implement various schemes of their own and also of the National Corporation. These include term loan schemes, loan schemes and seed capital schemes.

For the loan scheme up to Rs 2 lakh implemented by the Corporations, it has been approved to encumber the property of the beneficiaries or the immovable property of one guarantor.

Earlier, for loans between Rs 2 and 5 lakh, there was a condition of two guarantors. Now, instead, a provision has been made for one guarantor.

Further, the guarantor should be a person with immovable property or land in his name or an employee in the private sector or an employee in a government, semi-government or government-aided institution.

Along with this, the immovable property of the beneficiaries and guarantors will be encumbered.

The schemes of the National Scheduled Caste Backward Classes Financial Development Corporation (NSCFDC) and National Safai Karamcharis Financial Development Corporation (NSKFDC) are implemented through the state corporations.

For this, funds are provided in the form of loans by the national corporation to the state corporations. Term loan schemes, seed capital schemes, microfinance schemes, as well as educational loan schemes, are implemented from this loan fund, said the release.

To implement these schemes, a government guarantee of Rs 600 crore was given to Mahatma Phule Backward Classes Development Corporation, Rs 100 crore to Sahitya Ratna Lokshahir Anna Bhau Sathe Development Corporation, and Rs 50 crore to Sant Rohidas Leather Industries and Leather Workers Development Corporation for a period of five years. This will resolve pending loan cases, and new beneficiaries will also get loans.

--IANS

sj/dan