DHARAMSALA, Jan 11: Gangjong Development Finance Private Ltd. of the Central Tibetan Administration’s(CTA) Finance Department is now a full-fledged non-banking financial corporation (NBFC).
Gangjong Development Finance Private Limited is now a legitimate Non-Banking Financial Institution registered with the Reserve Bank of India (RBI), CTA President Dr Lobsang Sangay announced at a press conference held earlier today at the Kashag Secretariat of the CTA.
Gangjong Development Finance Private Ltd., an NBFC of the CTA’s Finance Department received its license from the RBI on December 13, 2018, as a Non-Banking Financial Institution.
President Sangay attended the press conference along with Finance Kalon(Minister) Karma Yeshi, Chief Planning Officer Dr Kunchok Tsundue CEO Ram Mohan Rao, Chief Resilience Officer Kaydor Aukartsang and Finance Secretary Yeshi Wangmo and announced CTA’s new loan product; Summer Livelihood Support Programme for the year 2019 by Social and Resource Development Fund (SARD), Department of Finance.
CTA will provide loans worth a total of Rs 12 Crores (120 Million) at a minimal 3% interest rate to support Tibetan Summer businesses across India under its new loan scheme.
Summer Livelihood Support Programme is chiefly aimed at Tibetans in India with a goal to strengthen their self-reliance and sustainability to help them thrive economically as well as to strengthen Tibetan economy and transform it into an economically self-reliant community through CTA’s minimal interest loan schemes, President Sangay said.
SARD maintains that the summer Livelihood Support program is to support the community members whose major business activity is in the summer season. Though the size and number of the summer businesses are smaller than the winter sweater Sellers, the administration says the summer business segment is more organized.
CTA’s Finance department has already rolled out a 100-million rupees’loan scheme under the Livelihood program in 2017 and 2018 for Tibetan sweater traders at a meagre interest rate of 3%.
Finance Kalon Karma Yeshi applauded the program as a success as it has achieved a 100 per cent on-time repayment rate in the first two years of its implementation in 2017 and 2018.
He expects the amounts will be repaid fully and on time this round as well which he says will help to expand the livelihood support program in future.
It is understood that approximately 600 Tibetans are going to benefit from this programme.
According to the press release, while a recent survey undertaken by SARD has revealed there are over 35 well-established summer retail markets all over India with 1594 shops. Owing to its selection criteria, it has selected only 13 markets for the inaugural Summer Livelihood Support Programme.
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.