In 151 minority-concentrated districts across the country, banks to give special priority in providing loans to the applicants belonging to the minority community. Banks have started the implementation on the guidelines of the Central government, the Hindustan has reported. Under the scheme, banks have started identifying such borrowers from the minority community who have repaid their loans taken earlier, but their CIBIL score became poor due to non payment of loan installments regularly.

Senior District Bank Officer of Moradabad, Govind Awasthi was quoted in Hindustan saying that the beneficiaries of the minority communities who repaid the loan three years ago will be brought under the right-off category. Awasthi further said that their loan application will be approved with special priority. The loan application of such applicants from the minority community will be treated as a fresh application and priority will be given to accepting their loan application.

Instruction has been issued to the managers of all bank branches to approve loan applications of the applicants from the minority category with special priority. Also, it has been instructed to make the customers from minority communities aware of the beneficiary scheme implemented for them.

Under the Pradhan Mantri MUDRA Yojana (PMMY), loans up to rupees 10 lakh are provided to non-corporate, non-farm small/micro enterprises by the commercial banks, regional rural banks (RRBs), small finance banks, microfinance institutions (MFIs), and non-banking financial company (NBFC) NBFCs. Under the scheme, the loan is provided without any security deposit, with very less processing fees. Moreover, the government guarantees the loan. Further, women, scheduled castes, scheduled tribes, and people belonging to minority communities are given concessions in the interest rate under the scheme.