CTA’s Gang-Jong Development Finance announces low-interest commercial loan for Tibetan enterprises in India
DHARAMSALA, 18 Aug: The Central Tibetan Administration(CTA)today rolled out a new commercial loan product for Tibetan enterprises across India with a minimum interest rate.
CTA President Dr Lobsang Sangay announced the scheme, an undertaking of Gang-Jong Development Finance Private Ltd.(Tibfin), a non-banking financial corporation(NBFC) of CTA’s Finance department.
Under the new commercial loan product, the exile government’s NBFC has allocated grant up to 5 crores loan at a minimum interest rate so that Tibfin can become a full-fledged bank.
Announcing Rs 10 lakh and Rs 20 Lakh commercial loan at a low-interest rate of 10% and 20% respectively, President Sangay called on Tibetan entrepreneurs to avail the loan and support Tibfin in its efforts to become a small finance bank.
Tibfin received its NBFC license from the RBI on 13 December 2018 but for it to become a small finance bank, it should offer commercial loans.
The only difference between an NBFC and a normal bank is that while a normal bank can accept deposits and give withdrawal facilities, the NBFC can only sell its shares.
CTA’s Finance Kalon Karma Yeshi declared the NBFC a member of RBI and added that standard rules and regulations of the banking system under RBI are applicable to secure the commercial loan.
He added that in accordance with the founding principle of the Tibfin that is to strengthen Tibetan economy and transform it into an economically self-reliant community, the commercial loan too will attend to the loan needs of the Tibetan enterprises with an ultimate goal of making our Tibetan community an economically self-reliant community.
Applicants must have among others a legal business plan, residential proof from Tibetan settlement office, copy of an updated green book and no past record of loan default to apply for the commercial loan.
Tibfin’s loan scheme under the Livelihood program at a meagre interest rate of 3% has benefited 3816 Tibetan sweater traders from 2017- 2019.
The loan amounting to Rs 40 Crores has been repaid in its entirety by the Tibetan sweater traders, and the administration expects the same success as it rolls out its new commercial loan.
As the COVID-19 pandemic poses a great challenge for this year’s sweater traders, the administration announced a lone package of Rs 3 crores with zero interest rates for Tibetan traders selling sweaters and woollen garments in Coronavirus green zone Indian cities.