State Govt agency fails to give loans to Muslims | india | Hindustan Times
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State Govt agency fails to give loans to Muslims

india Updated: Jan 30, 2007 16:29 IST
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THE STATE agency that extends loans to Muslims and Backward Classes is virtually defunct. The agency — the MP Backward Classes and Minorities (Finance and Development) Corporation — itself is to blame for its inability to provide loan facility to Muslims. 
 
The corporation has defaulted on repayment to the National Minorities Corporation, which, in turn, stopped financing the State body two years ago.

Incidentally, the Justice Sachar Committee report on the status of the Indian Muslim extensively highlighted alleged discriminatory attitude of public sector banks towards extending loans to minority community.

Admitting discontinuance of financial aid, MP Backward Classes and Minorities (Finance and Development) Corporation Managing Director M L Kaurau told the Hindustan Times that the corporation owed Rs 6 crore to the National Minority Corporation. “Until we repay at least 25 per cent of the outstanding amount, there is no scope of resumption of financing,” he added.

He said circulars have been issued to recover over Rs 5 crore lent as loans to various people. Besides, the corporation also registered cases of cheque dishonour against many defaulters.    He expressed the hope that corporation would recover over 60 per cent loan in next few months.

MP State Minorities Commission secretary Omar Farooq Khatani had raised the issue of poor financing to Muslims during the State Level Bankers Committee (SLBC) meeting recently. He lamented that public sector banks were not extending financial help to Muslims as per their ratio in the State’s population.


Default in repayment
The MP Backward Classes and Minorities Corporation receives finance from National Minorities Corporation
The state body defaulted on repayment to the National Minorities Corporation
National Minorities Corporation stopped financing the state body
Until the State body repays at least 25 per cent of the outstanding Rs 6 crore, there is no scope of resumption of financing

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