By Tenzin Monlam
DHARAMSHALA, April 6: The exile Tibetan government officially known as Central Tibetan Administration (CTA) today announced the launch of their pilot term loan scheme, ‘Tibetan Hosiery Traders’ loan-2017’, with minimal interest rate.
Ahead of the Tibetan Refugee Traders Association’s (TRTA) General Body Meeting at Ludhiana from April 11, the Department of Finance in association with USAID aims to assist 1000 families in its first year covering around 30 percent of the Tibetan traders. With a budget of INR 1,000,00000 (INR 800 lakh from USAID and the remaining from Finance department), the administration will provide a term loan of 100,000 Rupees at a minimal interest rate of 3 percent.
“Tibetan traders have been taking loans from various institutions at an interest rate ranging from 8-18 percent,” Tibetan Prime Minister (Sikyong) Lobsang Sangay said, “So naturally with a minimal rate, it would be of immense help in decreasing the overall interest rate.”
Around 45 percent of Tibetan exile population in India depend on the seasonal hosiery trade as their primary source of income. However, only members of the registered chapters of TRTA can avail the benefit. As of now, TRTA has 169 registered chapters and around 3,500 families.
“Since it is a pilot project, we are only selecting the traders from the registered chapters while working with the Tibetan Settlement officers to verify the green book of the applicants,” said Dr. Kunchok Tsundue, Chief Planning Officer and coordinator of the hosiery loan scheme.
He further added, “This is especially for those with low capital, new to the trade, for those who were unable to get loan from banks and also to matriarchal families. Therefore, the fund would be equally be distributed and the chapters have accepted the responsibility of distributing it to those in need.”
The administration maintains that the criteria to avail the benefit and interest rate have been kept minimal in order to pass on maximum benefit to those in need.
Dr. Kunchok said that the TRTA and its chapters have taken the responsibility of loan repayments. Those failing to do so will be treated accordingly by the association and its chapters’ rules and regulations.
“I don’t think anyone would have trouble repaying in time since most of them have been repaying their loans ahead of time in four months. So six months is long enough. However, if anyone fails to do so, the interest rate from the seventh month would be equivalent to the market rate,” he said while adding that it would also benefit the wholesalers as the better purchasing power of the Tibetan traders would mean greater business from them.
The loan scheme, if availed by the targeted number of families, is expected to generate around INR 30 lakh and CTA as its next step said that they would launch similar schemes for summer sweater sellers and farmers.
