Gujarat Congress on Saturday claimed that the state government’s scheme for small entrepreneurs and self-employed workers – “Aatmanirbhar Gujarat Sahay Yojana” – seeks two guarantors and 10 different documents from the applicants, contrary to the chief minister’s claim.
Under the scheme, the urban and district cooperative banks and credit societies in the state will provide Rs 1 lakh as loans to small entrepreneurs and businessmen here at an interest rate of two per cent.
“On May 14, Chief Minister Vijay Rupani announced a scheme wherein he claimed that cooperative banks will give loans up to Rs 1 lakh at two percent interest without any guarantors, based only the application filed by an individual. However, the truth is completely different from what was advertised and publicised,” AICC spokesperson Shaktisinh Gohil said about the scheme which was floated by the government to provide liquidity to self- employed people whose incomes have been affected by Covid-19 lockdown.
Showing the application form for the scheme and a government release during a press conference on social media, Gohil said that an applicant under the scheme needs not just one but two guarantors and also asks for 10 different kind of documents along with the application form.
The applicant also needs to submit details of all members of his family as well, he said adding that the conditions mentioned in the application form for the scheme were totally different from the claims made by Rupani and the BJP while advertising the scheme.
Gohil said people stood for hours under the summer sun, braving the heat to get their hands on the application forms. When the applicants tried to filling in the application, Gohil claimed that the banks refused to it as cooperative banks as per the RBI norms can lend only to their members.
He also said that the banks which can have only 20 per cent nominal members have also exhausted the provision of making more nominal members to whom they could lend.
Asking BJP in Gujarat to apologise to the people who queued up before banks, Gohil said the state government should make their own funds available for the scheme instead of depending on cooperative banks.
The Indian Express has already reported that as Cooperative Banks have been mandated to extend loans to a cap of 10 per cent of their total assets, the Gujarat government has sent a proposal to the Reserve Bank of India (RBI) through the Union Finance Ministry to allow banks the freedom to lend up to 20 per cent of their total assets and to extend the cap of nominal members from the current 20 per cent to 40 per cent for this year.
Under this scheme the applicant has to submit five cheques to the bank as “security” along with the application form which seeks details like “purpose of loan,” family income and monthly expenses, details of existing loan as well as details of “two guarantors”.
An affidavit, an acceptance letter of having taken a loan, a demand promissory note, a loan agreement, documents to prove that applicant was self-employed as on January 1, 2020, copy of Aadhaar card of the applicant and all members of his or her family, copy of Pan card or Form-60 and ration card, also needs to be submitted with the application form.
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