Pune: Chief Minister’s Employment Generation Program Faces Roadblocks as Banks Show Reluctance

Pune, 28th November 2023: In Maharashtra, the Chief Minister’s Employment Generation Program (CMEGP) aims to empower youth to become entrepreneurs by initiating their businesses. However, recent revelations suggest that the program is facing challenges in garnering support from banks. In response to this, the district administration and district industry centre have directed nationalized banks, private banks, and all branches of the district central bank to approve loan applications for two new entrepreneurs each.

The CMEGP offers subsidized loans for the establishment of micro and small-scale enterprises. The program is executed by the District Industry Center and the Maharashtra State Village Industries Board under the Industries Department, to create 10 lakh jobs through the initiation of approximately one lakh micro-small enterprises in the state.

Despite these objectives, the lack of cooperation from banks is impeding the program’s progress. In the current financial year, the target is to support fifteen hundred new entrepreneurs in achieving self-sustainability. However, due to the banks’ lack of enthusiasm, the program is experiencing a slower pace than anticipated. In response, meetings are being conducted with bank officials through video conferencing by the District Pioneer Bank Manager and the District Industry Center. Senior officers from nationalized and private banks are participating in these discussions.

The district comprises 1,800 branches of private and nationalized banks, including both rural and urban areas. Given the widespread presence of branches from District Central Co-operative Bank in rural areas, efforts have been made to contact the chief officers of all these banks to meet the set targets. In cases where loan applications have errors or incomplete documents, instructions have been issued to guide the applicants in completing the requirements.

Currently, there are 1,500 pending cases of loan applications filed by new entrepreneurs in the district under the Chief Minister’s Employment Generation Scheme. Out of these, banks have sanctioned only 171 cases. The reasons cited by banks for rejecting loan applications include insufficient documents, delayed completion of documents, and low CIBIL scores. The district administration and industry centre are working towards resolving these issues and facilitating the smooth approval of loans to meet the program’s objectives.