The Vijay Rupani-led BJP authorities in Gujarat has been caught on the mistaken foot over its announcement of giving loans as much as Rs 1 lakh for round 10 lakh small merchants within the state whose companies have been affected throughout COVID-19 pandemic.
Earlier this month, Gujarat Chief Minister Rupani had introduced that beneath the Aatma Nirbhar Gujarat Sahay Yojana, Rs 1 lakh could be given as a loan to small merchants, store house owners and small-scale businessmen by cooperative banks and cooperative credit score society banks of the state.
Whereas he introduced that the loans could be given merely on the premise of an software and with no different paperwork or guarantors required, on the bottom issues have turned out to be completely different.
The loan was to be of three years with a moratorium interval of six months. The beneficiaries can pay solely two per cent curiosity and the remaining six per cent will probably be borne by the state authorities.
Nevertheless, a couple of days in the past, when folks lined up in several elements of the state in entrance of the cooperative banks and cooperative credit score society banks, that they had a shocker prepared for them: They have been informed to get two guarantors.
As well as, the banks have but to disburse the varieties as these varieties haven’t been printed.
The AICC spokesperson from Gujarat, Shaktisinh Gohil, on Saturday hit out on the Gujarat state authorities alleging that these are merely bulletins because the banks cannot give loans with out making the beneficiary a shareholder.
He mentioned that the cooperative banks are beneath the purview of the Reserve Bank of India and that as per the principles, loans cannot be given to anybody who isn’t a shareholder.
Gohil identified that even the Gujarat BJP’s web site talks about two guarantors and 10 paperwork which can be required.
Sources within the cooperative banking sector talking to THE WEEK questioned the feasibility of the plan, because the cooperative banking sector doesn’t have the quantity to provide as loans which have been dedicated by the chief minister.
One of many gamers within the cooperative banking sector mentioned that additionally they worry that beneficiaries might end up defaulters as they may not have the capability to return the cash. Sources mentioned that in these two months, lakhs of individuals have borrowed cash from personal cash lenders.