Click to play videoNew Delhi: Both foreign and domestic markets are in the grip of a strangulating recession and Government has been in an overdrive to infuse credit flow in the system.
One sector it has been successful is in providing credit to the minorities. Government-controlled public sector banks are now more confident in lending to the minorities.
It all started with Sachar Panel report last year enlisting poor credit facility to Muslims. The report was tabled in Parliament and the in an action-taken report, it was promised that loans to the Muslims would now be made easily accessible.
So it was decided last year that 15 per cent of all priority sector loans by 2010 should go to the minorities after showing some initial reluctance.
Government banks last year disbursed about Rs 58,000 cr as loans to the minorities. This year’s target was set at Rs 86,000 cr.
By September, almost Rs 60,000 cr of the stipulated money has already been lent to applicants from the minority community. Muslim organisations have welcomed the figures but have been demanding a lot more from the Government.
"For socially and educationally backward Muslims what is required is reservation in jobs and education,” All India Muslim Personal Law Board spokesperson, S Q R Illiyas says.
So all public banks have now started keeping a record of the loans applied and availed by minorities.
In fact this financial year, of the 2.5 lakh applications, 2.3 lakh have been approved by the banks, showing renewed confidence in the minorities.
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