Lok Sabha Question No. 242 (UNSTARRED), answered on 2018-12-12
Subject: Bank Loan for Minority Communities
Ministry: MINORITY AFFAIRS
Asked by: VIJAYSINH MOHITE PATIL, RAJEEV SHANKARRAO SATAV, DHANANJAY BHIMRAO MAHADIK, SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, P.R. SUNDARAM, JAYAKUMAR JAYAVARDHAN

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 242. TO BE ANSWERED ON 12.12.2018

## Bank Loan for Minority Communities

242. SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

SHRI SATAV RAJEEV:

SHRI DHANANJAY MAHADIK:

SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI P.R. SUNDARAM:

DR. J. JAYAVARDHAN:

Will the Minister of MINORITY AFFAIRS be pleased to state:

- (a)  whether  some  Nationalized  banks  are  providing  loans  and  advances exclusively for minority communities;
- (b)  if  so,  the  details of loans provided during each of the last three years and the current year;
- (c) whether  the  Government  has  identified  minority  concentration  districts  for this purpose;
- (d)  if so, the details thereof, State/UT-wise; and
- (e)  whether  the  Government's  attention  is  drawn  to  the  difficulties  faced  by minority community in getting loans for business/enterprises and if so, the corrective steps taken by the Government in this regard?

## ANSWER

## MINISTER OF MINORITY AFFAIRS (SHRI MUKHTAR ABBAS NAQVI)

(a) to (e): The  Reserve  Bank  of  India  (RBI)  has  informed  that  nationalized banks  extend  credit  to  minority  communities  including  other  sections  of  the society.  In  addition,  as  per  instructions  received  from  the  Government  of  India (GoI) to the RBI, all commercial banks have been advised to ensure smooth flow of bank credit to minority communities via RBI's Master Circular dated 02.07.2018 on  credit  facilities  to  minority  communities.  Details  of  loans  thus  provided,  as available, are as under:

|   Year ( As on March) | Amount Outstanding (Rs. in crore)   |
|-----------------------|-------------------------------------|
|                  2015 | 3,12,061.08                         |
|                  2016 | 3,36,708.92                         |
|                  2017 | 3,68,276.33                         |
|                  2018 | 3,52,734.44                         |

The Master Circular also provides the list of 121 Minority Concentration Districts (MCDs) having at least 25% minority population, excluding the States/UTs where minorities  are  in  majority  viz.  Jammu  and  Kashmir,  Lakshadweep,  Meghalaya, Mizoram,  Nagaland  and  Punjab  (Details of these MCDs  are  on  the  link https://rbidocs.rbi.org.in/rdocs/notification/PDFs/08MCA2A057C4748247B9B4470 F8C8F5A1D92.PDF).

Besides, National Minorities Development and Finance Corporation (NMDFC), a Public  Sector  Unit  under  the  Ministry  of  Minority  Affairs  (MoMA),  implements, inter-alia, loan schemes  for  the  socio-economic  development  of  backward sections amongst the notified minorities through the State Channelising Agencies (SCAs) nominated by the respective State/UT. These schemes are (i) Term Loan, (ii) Educational Loan, (iii) Micro Finance and; (iv) Mahila Samriddhi Yojana.

The RBI has put in place a mechanism by which the disposal of loan applications of the beneficiaries is monitored and the information of the individual application is available to indicate whether the loan application has been accepted or rejected or pending.

As regards NMDFC, it has been stated that no reference has been received by it regarding difficulties being faced by the minority communities in getting loans for business/enterprises.  However,  the  following  steps  have  been  introduced  to strengthen the functioning of NMDFC for effective implementation of its schemes and to simplify the procedure for availing funds under the schemes of NMDFC:

- (i) Providing Grant-in-Aid assistance by MoMA for strengthening the infrastructure and operational capability of SCAs for effective implementation of schemes of NMDFC.
- (ii) Introduction of new Annual Family Income eligibility criterion of up to Rs. 6 lakh per annum for greater coverage of persons from the targeted minority communities.
- (iii) Quantum of loans under its Term Loan scheme increased from Rs. 10 lakh to Rs. 30 lakh while under Micro Finance scheme, it has been increased from Rs. 50 thousand to Rs. 1.50 lakh per Self Help Group member. Under Education Loan scheme, the quantum of loans has been increased from Rs. 5 lakh to Rs. 20 lakh for domestic courses and from Rs. 10 lakh to Rs. 30 lakh for courses abroad.
- (iv) Self Declaration /Self Certification /Self Attestation of documents in case of religion certificate, family income, residence proof, mark sheet, etc.
- (v) Insurance of beneficiary and  their assets to safeguard  against any untoward incident.

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