By Choekyi Lhamo
DHARAMSHALA, Aug. 18: Gang Jong Finance (TibFin) under the Finance Department of Central Tibetan Administration (CTA), also known as the Tibetan government in exile, will grant loans up to 5-crore rupees to Tibetan enterprises across India.
The President of CTA, Dr. Lobsang Sangay and the Minister of Finance, Karma Yeshi told the press Tuesday that under the 5-50 vision of the 15th Kashag (cabinet), this initiative will help Tibetans to become self-sufficient and bolster the lifestyle of Tibetans in India in the future.
“We’ve registered the bank with the Reserve Bank of India (RBI) for NBFC (Non-Banking Financial Company) license, as we look forward to granting commercial loans . . . We will charge 10% interest rate on 10-Lakh rupees and 12% interest rate on 20-lakh rupees loans. All recipients will have to abide by the RBI’s guidelines and laws where the institution will take legal measures on defaulters,” said the CTA President. Loans applicants must fulfil the criteria of being a Tibetan who has paid mandatory Green Book fee, with any prior experience in investment.
He also announced that the people who are planning for the winter sweater business this year can apply, “We will prioritize businesses from Green zone areas, and for only once this year, we will not take any interest from them this year. We have already received 150 applications and we welcome more applications.” The department will also give loans to people in containment zones that are eligible of the loan.
Minister Karma Yeshi charted out the selection process by TibFin that will include background checks of individuals and loan default history of applicants. “The businesses would have to pay taxes and work in accordance with the Indian government laws. The criterion will have to be fulfilled to receive such a loan. Tibetans have to take responsibility for returning such loans with interest without much complication.” He further said that his department will seek help from Settlement Officers to inform the public about the availability of capital under the scheme.
The Gang Jong’s Finance initiative aspires to be the first Tibetan banking system which is already a registered institution under the RBI.
