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Adds target is to disburse loan of Rs. 1127.75 lakh to beneficiaries during the year 2020-21


CHANDIGARH, (Gurpreet): The Social Justice, Empowerment and Minorities Minister, Punjab, Mr. Sadhu Singh Dharamsot has exhorted the youth of the state to avail loan welfare schemes being run by the State Government to be able to find avenues of self employment which would ensure their economic progress.

Disclosing this here today, the minister said that the Punjab Backward Classes Land Development and Finance Corporation (BACKFINCO) is running several schemes aimed at providing loans to the youth at low interest rates which can act as a catalyst for the skilled and enterprising youth to be well off financially by initiating their own ventures. He also said that BACKFINCO also provides loans for pursuing higher education.

Mr. Dharamsot said that Backfinko has been working with NBC for the year 2020-21. Under the scheme, a target of disbursement of loan of Rs. 1127.75 lakh to 751 beneficiaries has been set. Under this, loans amounting to Rs. 61.20 lakh have already been disbursed to 38 beneficiaries till June, 2020.

He said that education loan has also been arranged for the backward classes. Under this scheme, loan at the rate of 4% interest is given for education. The interest rate for girls is 3.5 per cent per annum. Debt is repaid in monthly installments over 5 years 6 months after the completion of the course. Provision has also been made to provide loan up to Rs. 20 lakh for study abroad.

He further said that as per the direct loan scheme, the BACKFINCO provides loan ranging upto Rs. 2 Lakh at an interest rate of 6 percent. Disclosing more, he said that this loan can be availed to start ventures for e.g. Dairy Farming (3-5 Animals), Poultry Farming, Growing Vegetables, Honey Bee Keeping, Carpentry/Furniture/Blacksmith ventures, Flour Mill, Auto-Rickshaw (Passenger/Freight Carrying), General Store (Karyana/Cattle/Poultry Feed), Hardware Store (Sanitary and Building Material, Steel etc.), Textile/Readymade Garment Shop, Books/Stationery Shop, Photostat Machine, Tailoring, Agricultural Implements (Fabrication), Automobile repair/Spare parts shop, Electronics/Electrical Sale and Repair, Fabrication Unit, Photography and Videograhy, Hosiery Units, Small Scale Industrial Unit (Manufacturing any goods/material), Sweet Shop/Dhaba, Beauty Parlour and Pandal or Shamiana Service.

The minister also divulged that it is necessary to fulfill main criteria of BACKFINCO to avail the loans. The candidate must be a permanent resident of Punjab with age between 18-55 and must belong to the backward class category as declared by the Punjab Government or minority category as declared by the Union Government.

Annual family income should be less than Rs 3 lakh for rural and urban areas. He said that 50 per cent loans would be given to the backward class applicants with an annual family income of up to Rs. 1.5 lakh.

If a person wants to take a loan for a technical profession, he must have at least a matriculation pass. He said that priority would be given to the youth who have got vocational training.