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Financial Assistance to Minorities under Subsidy for Bankable Scheme

Financial Assistance to Minorities under Subsidy for Bankable Scheme

Financial Assistance to Minorities under Subsidy for Bankable Scheme

The Andra Pradesh State Minorities Finance Corporation Limited has created a financial assistance programme to provide a grant-in-aid to the socially and economically weaker sections of minorities. This financial assistance applies to minority sections, namely Muslims, Sikhs, Buddhists, Parsis and Jains, enabling them to start a business, service, agriculture, small industries and other allied viable activities that generate self-employment to make their living. In this article, let us view in detail about the scheme.


The aims and goals of the organization are given below.

  • Development of socio-economic facilities
  • Advancement of women
  • Instilling confidence among minorities for the development of the nation

Subsidy of Bankable Scheme

The Andra Pradesh State Minorities Finance Corporation Limited has been implementing subsidy for bankable scheme to assist beneficiaries who are linked to the credit component of the banks. The scheme reaches out to 3464 poor minorities, offering them a sum of Rs.1732 lakhs.

Pattern of Assistance

The corporation provides financial assistance of Rs.2,50,000 in general and for transportation schemes, a sum of Rs.3,00,000 is provided, with a maximum subsidy component of Rs.1,00,000.

  1. Corporation subsidy: 50% of Unit Cost  (maximum up to Rs.1,00,000)
  2. Bank loan: 40% of Unit Cost (maximum up to Rs.1,50,000)
  3. Beneficiary contribution: 10% of Unit Cost (maximum up to Rs.30,000)
  • Subsidy from a corporation of 50% of the unit cost restricted to Rs.50,000, a beneficiary contribution of 10 % and the remaining is provided through a bank loan.
  • For transportation/Small and Micro enterprises (SSI Registered Units), a subsidy from a corporation of 50% of the unit cost that is limited to Rs.1,00,000, a beneficiary contribution of 10% and the remaining fund is offered by a bank loan.

Eligibility Criteria

Given below are the eligibility standards to apply for the subsidy for the bankable scheme.

  • All beneficiaries have to belong to a minority community.
  • The age of all beneficiaries must range between 21-55 years.
  • The annual income of the parent or applicant should not exceed Rs.2,00,000 in urban areas and Rs.1,50,000 in rural areas.
  • Beneficiaries have to possess an Aadhaar or Ration card.
  • Preference shall be given to women beneficiaries, thereby covering a minimum of 33% of the total target in District and Mandal level.

Application Procedure

Step 1: All minority applicants willing to avail financial assistance has to apply through the online beneficiary monitoring system (OBMMS) to ensure accountability and transparency.

Step 2: The hard copy of the online registered application would be obtained after registering the application.

Step 3: The hard copy of the application has to be submitted to the MPDO/Municipal Commissioner (municipality)/Zonal Commissioner with the following documents.

    • Income certificate that is issued by the Tahasildar
    • Photocopy of the Ration Card
    • Photocopy of the Aadhaar Card
    • One passport size photograph

Selection Procedure

  • The total target beneficiaries in a district would be sub-divided among Mandals or the municipalities in proportion to the Minority population of the concerned Mandals/municipalities of the districts.
  • The selection of the beneficiaries shall be made at the Mandal/municipality/municipal corporation level by a screening-cum-selection committee.
  • The composition of the screening-cum-selection committee is as follows.
    • The nodal officer from the Welfare Finance Corporations is nominated by the District Collector.
    • The managers of all participating banks.
    • A representative of DRDA/DOWUA.
    • MPDO/Municipal Commissioner/Zonal Commissioner
    • APSMFC presents it before the District Level Committee for approval on the receipt of sanction lists from all Mandals.


  • The Executive Director has to complete Loan Agreement Bond with Rs.10 special adhesive stamps before forwarding the proceedings to the Head Office for release of subsidy through online.
  • Subsidy for beneficiaries has to be administered through the online system.

Grounding and Follow-up Action

  • Once the unit is grounded by the bank, the Executive Director from AP Minorities Finance Corporation has to visit and assure that the loan amount is properly utilized by the beneficiary.
  • After conducting verification, a photograph of the unit along with the beneficiary and ED has to be obtained, and the photograph has to be filed by the concerned beneficiary. After completing this, upload the photograph in the website through ED login.

Implementation of the Scheme

A District Monitoring Committee headed by the District Collector monitors the implementation of the scheme. The committee performs the following functions.

  • Prepares the District Action Plan of the scheme.
  • The District Collector summons special DLBC’s to expedite the sanctioning process.
  • Ensures the Constitution of Selection Committees at the Mandal level and the selection of beneficiaries is made within the given period.
  • District Level Committee examines the complaints in the process of selection of beneficiary and grounding of the scheme.
  • Review the progress of the scheme at regular intervals.
  • Other interventions that are required for successful implementation of the scheme.

Selection of beneficiaries is completed during joint identification camps /exclusive identification camps for Minorities. All applications have to be registered only through online beneficiary monitoring system (OBMMS).

The above guidelines to implement Subsidy for Bankable Loan Scheme shall be carried out without any deviation of the budget provision that is allocated to the District.