Loans to Minorities Through Banks

Loans to Minorities Through Banks

Out of 90 districts identified in the country as Minority Concentration Districts (MCDs), 66 are Muslims dominated districts. However, statistics with regard to number of beneficiaries from these districts are not available but it has been reported by the Department of Financial Services that in 2011-2012, Rs.1,64,748.42 crore have been provided by the banks under Priority Sector Lending to minorities in India. Giving this information in written reply to a question in the Lok Sabha, Shri Vincent H. Pala, Minister of State for Minority Affairs, said that as per available statistics, the Priority Sector Lending to the minorities has increased from 10.60% in 2007-08 to 14.55% in 2011-12 showing a continuous rising trend.

In order to further enhance the credit flow to the minorities, the Government has taken the following measures:

i) Reserve Bank of India issues instructions from time to time on Priority Sector Lending for improving credit facilities to minority communities.

ii) A total of 5,954 bank branches have been opened in areas with substantial minority population during the period from 2007-2008 to 2011-2012.

iii) Public Sector Banks regularly monitor disposal of loan applications for minorities. The percentage of loan applications of minorities accepted by the banks has been consistently more than 98% during the period from 2008-2009 to 2011-2012.

iv) Public Sector Banks have organized 14,244 awareness campaigns in 15,466 towns/blocks having substantial minority population covering 38,295 branches from 2008-09 to 2011-12.