Bank curbs affecting Startup scheme
Source: Chronicle News Service

Thoubal, August 01 2024: With banks imposing certain conditions on beneficiaries of startup scheme introduced by the state government to create self-employment opportunities, individuals are facing significant challenges.

If the state government genuinely wants to support own initiative, it is crucial to relax the banks' conditions, said one Lourembam Kamal, a carpenter by profession.

Addressing media persons at Thoubal Khekman Mayai Leikai, Kamal explained that he applied for a loan under the Startup scheme in 2020 to expand his business.

His application was fortunately selected by the Manipur Planning Department, which manages the scheme, and the loan process was subsequently initiated at the Thoubal branch of Manipur State Cooperative Bank.

However, due to the stringent conditions imposed by the bank, Kamal had to spend considerable time and money compiling requisite documents.

Additionally, as finding guarantor is mandatory for availing loan but not an easy task, his loan process has been delayed for over four years.

He also mentioned that obtaining the loan entailing payment of income tax, open a GST account, provide land ownership certificate, land valuation, gift deed, Jam-abandi, non-encumbrance certificate, PAN card, and balance sheet for his firm, among other documents.

He invested significant time and money to acquire these documents, only to be informed by the bank that the deadline for claiming the subsidy had lapsed and that his form submission would not be accepted.

This issue is not unique to him but affects many applicants.

Therefore, if the government genuinely wants to support its own initiative for the benefit of unemployed individuals in the state, it is essential to relax some of the conditions imposed by the bank, he stressed.

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