FM Urges Swift Loan Disbursements for Employment Boost

 other banks to ascertain quantum of loan extended by them to startups

Chandigarh, December 22

          Directing banks to go full throttle on disbursements of loans under various schemes aimed at creating employment and boosting entrepreneurship in the state, the Punjab Finance Minister Advocate Harpal Singh Cheema on Friday asked the Lead bank Punjab National Bank (PNB) and other banks in the State Level Bankers’ Committee (SLBC) to meet their targets of disbursement of Mudra and other loans for startups in Punjab by March 2024 by giving due emphasis on schemes aimed at empowering the SC/ST communities and women, startups by the youth, and Micro, Small & Medium Enterprises (MSMEs).

     Leading a meeting at Punjab Bhawan, Punjab Finance Minister, along with Vikramjeet Singh Sahney, MP, Rajya Sabha, aimed to assess loans for self-employment and startups under schemes like Pradhan Mantri Mudra Yojna (PMMY), Prime Minister Employment Generation Programme (PMEGP), and National Urban Livelihood Mission. Nationalized banks are expected to provide loan ranging from Rs 50,000 to 2 crores to young entrepreneurs.

Cheema mentioned that the Department of Industries and Commerce has urged banks, through a Demi-official (DO) letter, to facilitate loans up to 10 lacs for small projects for ITI pass students. Notably, banks have sanctioned only 52 cases out of 623 ITI student cases.

Harpal Singh Cheema expressed hope for improved bank performance, noting the Chief Minister Bhagwant Singh Mann-led Punjab government’s willingness to extend support. Plans for another meeting to review their performance were indicated.

          Meanwhile, Vikramjit Singh Sahney asked the banks to disburse the loans under all three Shishu, Kishore and Tarun schemes of Pradhan Mantri Mudra Yojna (PMMY) and not just limit themselves to small loans only. He said that in his recent meeting with Union Finance Minister have assured that she will intervene if there are any shortcomings in extending these loans to the youth by the Banks. “The Punjab Government under the leadership of Chief Minister Bhagwant Singh Mann is doing its best to create job opportunities. We are skilling our youth, empowering our farmers and uplifting the weaker sections of the society. There are about 6300 branches of various banks in the state”, said Sahney while adding that even if each branch passes at least 5 loan cases each under various schemes it would help in brightening the future of more than 30,000 youth of the state.

          Earlier, a PowerPoint presentation was made to discuss the current status of loans extended by the banks under PMMY, PMEGP, Stand-up India Scheme for financing SC/ST and/or Women Entrepreneurs, central sector scheme for ‘Financing Facility under Agriculture Infrastructure Fund’, PM Formalisation of Micro Food Processing Enterprises Scheme, National Urban Livelihood Mission, and PM Street Vendors Atma Nirbhar Nidhi scheme.

          The meeting was attended by senior officials from the departments of Finance, Agriculture and Farmers Welfare, Horticulture, Industries and Commerce, Animal Husbandry and Local Government, and senior representatives of Punjab National Bank (PNB) and other banks in the State Level Bankers’ Committee.