MANISH GUPTA
Ranchi, Sept 10: Recent amendments in the Chief Minister Employment Generation Programme (CMEGP) is likely to double both the number of beneficiaries and the volume of loan advanced for starting a business in Ranchi, say state officials.
“Several changes have been made to the employment generation programme to make it more attractive and accessible,” Ranchi District Welfare Officer Sangeeta Sharan told lagatar24.com about the scheme that promotes entrepreneurship among youths.
The state government recently changed rules related to the business loan of up to Rs 25 lakh for reserved communities in terms of subsidy, age criteria, calculation of EMI and the spectrum of eligible guarantors in a cabinet meeting last month.
“In 2021-22, we lent out business loans to 435 beneficiaries in Ranchi district. The total advance was Rs 10.87 crore. With the simplification and relaxation of rules, we expect to double the impact to about 900 beneficiaries and up to Rs 20 crore,” she said.
The state government has geared up to promote the scheme meant for Scheduled Tribe, Scheduled Caste, Other Backward Caste, Minorities and physically handicapped people in the 18 to 50 years age bracket with less than Rs 5 lakh annual family income.
“The beneficiaries are from both rural and urban areas. We are seeing huge demand for loans to purchase vehicles,” said Sharan, adding that earlier the loan was only up to Rs 10 lakh and the subsidy amount was only up to Rs 10,000. Both have been revised.
After the changes, people can take business loans of up to Rs 25 lakh with 40 per cent subsidy to a maximum of Rs 5 lakh. The EMI will be calculated after the deduction of the subsidy amount, and the interest rate on the balance amount will be mere 6 per cent.
Ajay Nath Jha, Additional Secretary, Department of Scheduled Tribe, Scheduled Caste, Minority and Backward Class Welfare, Government of Jharkhand, said, “This is a very ambitious project now. From about Rs 39 crore last year, the budget for the CMEGP scheme has been hiked to Rs 100 crore for the ongoing financial year.”
While no guarantor is required for loans up to Rs 50,000 and loans for vehicles, plant and machinery, for other business loans equal worth of movable or immovable assets will be eligible as guarantee. The list of guarantors has been expanded widely.
In the revised guidelines, the list of eligible guarantors comprise of current and former public representatives, working and retired government and semi government employees, working and retired private company employees, and income tax payers.
People who wish to avail the business loan can apply in one of these offices — District Welfare Office, and branch offices of Jharkhand State Backward Class Finance and Development Corporation, Jharkhand State Tribal Cooperative Development Corporation, Jharkhand State Minorities Finance and Development Corporation, and Jharkhand State Scheduled Caste Cooperative Development Corporation.
