SIDBI TO PROVIDE LOANS TO MUSLIMS FOR BUSINESSES

Small Industries Development Bank of India (SIDBI) has pledged to provide Muslims with capital for small businesses that involve starting a new or expanding an existing business. 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…

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Small Industries Development Bank of India (SIDBI) has pledged to provide Muslims with capital for small businesses that involve starting a new or expanding an existing business. 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, which was established in 1990, provides loans for establishment and development of small scale sector businesses in India. The industries where investment in plant and machinery does not exceed Rs. 10 million are considered small scale.
Mr. Malla also said that a special cell has 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 Reserve Bank of India circular issued in July this year 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 should have an officer to look after the problems related exclusively to the credit flow to minorities. This officer will also be responsible of publicising programmes and schemes available to the minorities.