Chandigarh: The Punjab Government has set a target to provide a loan of Rs 1127.75 lakh during the year 2020-2021 to uplift the economic standard of the backward class youth of the state.

Punjab Minister for Social Justice, Empowerment and Minorities Sadhu Singh Dharmsot said that Punjab Backward Classes Land Development and Finance Corporation (Backfinco) has set the target to disburse the loan of Rs 1127.75 lac to 751 beneficiaries during the year of 2020-21.

Sadhu Singh Dharamsot

Under this, loans amounting to Rs 109.60 lakh have been already disbursed to 65 beneficiaries till July 31, 2020. Besides, loans of Rs 5.50 lakh have been disbursed to 3 beneficiaries under direct loan scheme.

He said that the corporation has been disbursed loan of Rs 2433.86 lac to total 1459 beneficiaries in time span of 2016-17 to 2019-2020 under Direct Loan Scheme.

Sadhu Singh DharamsotThe Minister further said that the government was providing loans at cheaper rates to the backward class youth of the state. He said that the trained youth could avail the benefits of this scheme and improve their economy by starting their own business.

He said that the Backfinco has also provided loans to the backward class youth for higher education. Under this scheme students can take loan for studying at 4% interest rate. The interest rate for girls is 3.5 per cent per annum.

Punjab government Dharmsot further said that the loan is repaid in monthly installments after 6 months of the completion of the course in 5 years. He said that provision has also been made to provide loan up to Rs 20 lakh for study abroad.

He said that in order to get loan from Backfinco, it is necessary to meet the basic qualifications. He said that priority would be given to the vocational trained youth in providing loans.