Exemption from 2 % guarantee fee condition by Punjab government for welfare of backward classes and economically disadvantaged individuals: Dr. Baljit Kaur

Chandigarh, September 22:

          The Punjab government, led by Chief Minister Bhagwant Singh Mann, has decided to exempt the 2 percent guarantee fee requirement for the betterment of backward classes and economically vulnerable individuals.

          Divulging in this regard, Punjab Social Justice, Empowerment and Minorities Minister Dr. Baljit Kaur stated that the Backward Classes Corporation provides loans at low-interest rates for self-employment schemes aimed at benefiting the backward classes and economically disadvantaged individuals, enabling unemployed youth from these communities to establish their own businesses.

          The Minister explained that Backfinco obtains loans from the national corporation with the backing of the Punjab government's guarantee. The Punjab Government Finance Department negotiated a revolving guarantee of Rs. 30 crore in favor of the NBCFDC agreeing subject to the condition that the exemption from the 2 percent guarantee fee on this guarantee will be deposited in the treasury. Which is amounting to Rs. 60 lakh.

          The Cabinet Minister said that the additional burden of this guarantee fee had to fell on Backfinco, which she took very seriously and raised the issue of waiving off this guarantee fee with Chief Minister Bhagwant Singh Mann. The Chief Minister has agreed to this request. As a result, the Punjab Government has exempted the 2 percent guarantee fee condition of Rs 60 lakh.

          The Minister further explained that Bankfico, securing maximum loans from the national corporation at low-interest rates, will  provided self-employment loans to economically disadvantaged individuals from backward classes in Punjab. Additionally, educated youth from backward classes will be provided loans for higher education under the education loan program supported by NECFDC with a 4 percent annual interest rate.

          She emphasized that the Punjab government, under the leadership of Chief Minister Bhagwant Singh Mann, remains committed to improving the economic well-being of people belonging to backward classes and weaker sections.