Annasaheb Patil Loan Scheme Details - Summary
The Annasaheb Patil Loan Scheme provides essential support for economically weaker sections in India. Established by the State Government on 27/11/1998, the Annasaheb Patil Economic Backward Development Corporation aims to uplift these communities.
Objectives of the Loan Scheme
- To empower economically backward sections, especially unemployed youth.
- To provide job and self-employment opportunities by implementing this scheme.
- To promote social development among economically weaker groups.
Working Plan and Current Challenges
The government aims to give economically backward beneficiaries, including Marathas, Brahmins, Marwaris, and Sindhis, a chance to start industries and businesses through the Annasaheb Patil Loan Scheme. However, due to outdated and strict conditions, this beneficial scheme might remain ineffective. As the financial year 2013-14 comes to an end, the low response from beneficiaries for the Corporation’s Seed Capital Loan Scheme shows that the objective of disbursing loans at the district level is far from being met. Currently, the Seed Capital Loan Scheme offers financial help for business investments up to Rs. 5 lakhs.
In the scheme, nationalized banks contribute 60 percent, while the applicants must invest five percent of their own. The Corporation provides about 35% of the sanctioned project amount as seed capital, charging four percent annual interest on this amount. Borrowers have a repayment period of five years, and the family income of applicants should not exceed Rs. 55,000 in urban areas and Rs. 40,000 in rural areas.
The government has set specific district-wise objectives, aiming for 85 loans in Dhule district. By October 2013, instructions were given to district and self-employment guidance centers to send at least three times the target loan cases to banks for approval. Yet, the scheme faces challenges due to strict conditions regarding family income, the need for guarantors, youth apathy towards industrial job creation, and lack of awareness.
To improve the situation, the old and strict conditions should be relaxed. The Corporation has also requested the resumption of the direct loan scheme up to Rs. 50,000 and the educational loan scheme.
Download the Annasaheb Patil Loan Scheme Details in PDF format using the link given below.
