Portfolio down to Rs 2.9 crore in 2023-24
Shoma Patnaik
Panaji: The number of beneficiaries under the Chief Minister Rozgar Yojana (CMRY) loan scheme of the EDC has dropped sharply in 2022-23, reflecting the challenges in promotion of self-employment.
Despite its extremely attractive rate of interest to borrowers, there has been a trend of decrease in demand for the scheme in the last four years.
According to the Goa economic survey 2023-24, the number of CMRY borrowers crashed nearly 50% in 2022-23, to 61 beneficiaries from 119 beneficiaries in the previous year (2021-22).
Applications for the scheme fell further in the current year with only 45 beneficiaries until December 2023. With the decline in beneficiaries, the CMRY loan portfolio of the EDC has been down to `2.9 crore in 2023-24, as of December 2023, from a high of `21 crore in 2019-20.
Started in 2001, the scheme is EDC’s flagship loan product. It aims at creating self-employment among locals in the age group of 18-45 years. It also aims at tackling joblessness.
The scheme has benefitted thousands of Goans in starting small businesses and become self-sufficient. It scores on easy terms of lending through less documentation and collateral security vis-à-vis approaching banks for funds.
However, the coronavirus pandemic affected it adversely with less people availing of loans. It was plagued by loan defaults.
For the first time, loans under the scheme turned doubtful from nearly zero NPAs in the past.
The scheme was revamped recently to widen the eligibility criteria to pull in more borrowers. The age limit has been enhanced to 50 years and the income limit removed to enhance coverage.
Under the scheme, the loan limit for professionals and technically qualified persons is Rs 25 lakh and for others it is Rs 20 lakh, repayable in maximum of seven years.
Women and physically challenged beneficiaries who take loans under the scheme are charged an effective interest rate of only 2%, due to the interest rebate of 6% on a coupon rate of 8%.
The EDC is the only profit-making corporation of Goa, with profit of Rs.62.35 crore in 2022-23.