SC, ST entrepreneurs denied Loans: Lok Satta Party

The Lok Satta Party today charged financial institutions with bias and the State Government with indifference in going to the assistance of SC and ST entrepreneurs.

Talking to the media, party spokesperson Katari Srinivasa Rao pointed out that banks and other financial institutions extended loans freely and without even collaterals to the socially well connected while they denied loans to SC and ST entrepreneurs without any collateral guarantee.

The State Government which had promised to arrange financial assistance of Rs.25,000 crore to 5000 SCs and STs in five years had enabled only 200 SCs and STs to access bank loans of less than Rs.100 crore.

Mr. Srinivasa Rao said that the Government squandered thousands of crores of rupees on populist schemes like supply of rice at Rs.2 a kg which merely perpetuated poverty. In contrast, grant of loans to SC, ST entrepreneurs would make them self-reliant.

If the Government has the will, it can facilitate bank financing by providing guarantee to SC, ST entrepreneurs.

Mr. Srinivasa Rao welcomed the State Government decision to appoint an Ombudsman in each district to go into irregularities in National Rural Employment Guarantee Scheme implementation.