Banks denied loans to 3,888 unemployed youths in the district

DIC: Only 359 proposals get loans from banks under CMEGP

Aurangabad, July 17:

It has come to light that banks in the city are rejecting the loan proposals filed by unemployed youths through the District Industry Centre (DIC) to start businesses under the Chief Minister's Employment Generation Programme (CMEGP). In three years, 3,888 such proposals got rejected by the banks and only 359 proposals have been approved.

The unemployment graph has been steadily increasing for the past few years. To provide youths with self employment opportunities and loans, the government introduced CMEGP. In three years, 10,071 youths from the district have submitted online loan proposals to the government through the DIC and Khadi Gramudyog for doing business. These proposals were sent to various banks in the district for approval. However, banks are seen to be indifferent towards lending to the unemployed. The DIC sent 7,745 loan proposals to various banks. But 3,027 proposals were rejected and 282 proposals were approved. While 1,212 proposals are lying with the banks. Likewise, the unemployed youths in rural areas have to submit loan proposals through the Khadi Gramodyog. Such 2,326 proposals from the rural areas were sent to banks, but only 77 of them were approved, while 861 were denied loans. Banks have not yet taken any decision on 263 proposals.

Loan approval from Rs 10 to 25 lakh

Banks can approve loans from Rs 10 to 25 lakh for proposals filed under CMEGF. A subsidy of 15 percent is given for open category urban applicants and 25 percent subsidy for rural applicants. Schedule caste, scheduled tribe, women, disabled and ex-servicemen special categories have 25 percent subsidy for urban applicants and 35 percent subsidy for rural applicants.