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Finance Minister P. Chidambaram today inaugurated a novel joint venture between SBI and SAFAL, the fruit and vegetable wing of the Mother dairy, which will offer loans to people intending to buy vegetables and fruits. He emphasized that this unique and trendsetting JV, named TGC Ltd. will mitigate the distress of the citizens who are finding it difficult to buy vegetables due to enormous increase in their prices. He added that while increase in prices is welcome from the perspective of the farmers and it also helps increase the GDP of the country, this JV will remove the hardships being faced by housewives. He hoped that the whole country will henceforth welcome further increase in prices likely to happen over next few months since the loan amount would be linked to the inflation indices. This company will start disbursing loans to millions of housewives within a fortnight, and devise effective means of recovering the loans quickly. He was quite hopeful that on seeing its salutary effects, the RBI will finally reduce interest rates, thereby ushering in the era of double digit economic growth as promised by the UPA.
Mr Kela Ram, the CMD of the new company TGC Ltd., explained in detail the fool proof method that had been devised to eliminate ‘leakage’ of the funds and speedy recovery of the loans. Every citizen, who has an active Aadhar linked bank account, will be entitled to this loan. The processing of the loan will be done with minimal paper work directly at the mother dairy booth selling vegetables. The borrower will have to just sign a mandate allowing a direct electronic deduction of EMI from his bank account, and he will be given coupons every month in accordance with the EMI. Thus with the minimum EMI of Rs.1200 per month , payable for two years, one will get coupons worth Rs.2000 every month for a year which can be used to buy vegetables and fruits from any outlet in the country. It is expected that this amount should suffice for bachelors living alone. Depending on the family size, and the requirement of vegetables and fruits, EMI amount can be increased up to Rs.9000 per month, for which one will get coupons worth Rs.15000 per month. For getting loans with EMI greater than Rs.4000 per month, the borrowers will also have to produce a copy of their IT returns of 2012. The government has set aside Rs.50,000 crores for disbursement as loan during the next six months
The Congress party, has hailed this as ‘The Game Changer’ scheme – the brain child of Shri Rahul Gandhi — that will be a win-win strategy for the farmers, the consumers and the economy of the nation. Mr Digvijay Singh tweeted that this innovative scheme has once again established the great vision of the youth leader, whose credentials for being the next PM of India cannot be challenged now. Many economists also agree that the mere act of disbursing such a huge amount as loan and then ‘hopefully’ recovering it quickly will add greatly to the GDP.
(Written by special correspondent, Trishanku)