SIDBI promises loans to Muslims for businesses

By staff reporter

New Delhi: Muslims have been promised money on loan for economic activities that involves starting a new or expanding an existing business. Small Industries Development Bank of India (SIDBI) will help Muslim by providing them capital for small businesses.

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Information to this effect was given by SIDBI’s chairman Mr. R. M. Malla while talking to Hindi daily Hindustan. He said that following the recommendations of Sachar Committee, SIDBI will give loan to Muslims and other minorities on a priority basis.

SIDBI established in 1990 provides loans for establishment and development of small scale sector businesses in India. Industries where investment in plant and machinery does not exceed Rs. 10 million is considered small scale.

Mr. Malla also informed that a special cell have been formed to monitor and encourage loan to minorities. He said that recently a number of loans have been provided to Muslims involved in Aligarh’s lock industry so that they can expand their capacity and production.

Setting up of special cell is in accordance with a circular issued in July of this year by the Reserve Bank of India (RBI) asking each bank to set up a cell that will “ensure smooth flow of credit to minority communities.” Further RBI asked that banks in minority concentration districts (MCD) should have an officer who should exclusively look after the problems regarding the credit flow to minorities. This officer will also be responsible of publicising programmes and schemes available to the minorities.

In June of this year, Government of India recognized 90 districts all over India as MCDs that are marked for special programs for their development.