Loans to SCs and STs

Loans to SCs & STs

 Banks extend loans to Scheduled Castes (SCs)/ Scheduled Tribes (STs) under Priority Sector Lending (PSL).  SCs/ STs from a sub-category under Weaker Section of PSL.  Further, under Government Sponsored Schemes, the reservation for SCs/ STs is as follows:

(i)       Swarna Jayanti Gram Swarozgar Yojana (SGSY)           -        50%

(ii)      Swarna Jayanti Shahari Rozgar Yojana (SJSRY) -        to the

                                    extent of their proportion in the population.

(iii)     Differential Rate of Interest (DRI) Scheme             -        40%

          As per data furnished by Reserve Bank of India (RBI), total loans outstanding under PSL and to SCs/ STs as on last reporting Friday of March, 2007, 2008 and 2009 (latest available) are as under:

(Amount in Rs. crore)

Source: RBI

          The measures taken by RBI to strengthen credit flow to SCs/ STs, inter-alia, include the following:

·         With a view to minimize rate of rejection of loan applications, banks have been advised to indicate reasons for rejection of application on the form itself;

·         Banks have been advised that the rejection of loan applications should be done at higher level instead of the branch level;

·         Banks have been advised to provide necessary institutional support to the National SC/ ST Finance and Development Corporation to enable the institution to achieve the desired objective; and

·         The banks also participate in special schemes of SC/ ST Corporation for development of SC/ ST which are piloted at State level through special component plans.

This information was given by the Minister of State for Finance, Shri Namo Narain Meenain a written reply to an Unstarred Question raised in Lok Sabha today.