Dharamshala: The Central Tibetan Administration and the Department of Finance today announced a new loan product under which Gang-Jong Finance (TibFin) will provide loans up to 5 crores for the Tibetan enterprises across India.
President Dr. Lobsang Sangay announced the loan product at a press conference held today. He also announced that efforts are underway to register Gang-Jong Finance as a full-fledged bank and secure an SFB license and clarified that though registered with Reserve Bank of India (RBI) as a non-banking financial institution, Gang-Jong Finance is very much alike in function as a banking institute as it involves loans sanctions and investment on equity shares, etc.
He also informed that Gang-Jong Finance is now a committee member of RBI and henceforth it would adopt the standard rules and regulation of the Indian banking system as it endeavors to become a full-fledged bank.
“However, In order for Gang-Jong Finance to become a small finance bank, commercial loans should be available and for that, your participation and contribution are highly needed” added Dr. Sangay.
Besides the seasonal livelihood support loan that is provided by the Gang-Jong Finance at low interest, commercial loan of Rs 10 Lakhs and Rs 20 lakhs at low interest of 10% and 12% respectively will be rolled out.
Those applying for the 10 lakhs and 20 lakhs loan are required to submit the application to [email protected] with a collateral agreement signed by the applicant with Gang-Jong Finance.
Furthermore, Dr Sangay informed a loan amounting Rs 3 crores with zero interest are being sanctioned to the Tibetan clients in the unaffected Green Zone and gradually those in the containment zone too can avail the loan.
“Ever since the set up of Gang-Jong Finance was taken by the 15th Kashag, the Tibetan business enterprises have thrived and strengthened the self-reliance and sustainability of the Tibetan community in India in a short span of time”
Finance Kalon Karma Yeshi explained the criteria needed to qualify for the above-mentioned loan and said that those who already applied for the loan before the deadline (14th August) will undergo close verification.
Loan applicants must have a legal business plan document in addition to other requirements such as the applicant must provide residential proof of a Tibetan settlement and a copy of the duly paid green book, etc.
“Our goal is to cater to the loan needs of small and medium Tibetan businesses through low-interest loan services. That way, we can build a self-reliant, empowered, and innovative Tibetan community capable of sustaining its unique socio-economic and public institutions”.
In 2017, the CTA with support from USAID, commissioned Dalberg Global Development Advisors to conduct a study on the feasibility and requirements of establishing a Tibetan bank for Tibetan refugees in India. The study found that certain unique needs of the Tibetan community could be best met by a Tibetan financial institution.
Subsequently, Gang-jong Development Finance Private Ltd. (TibFin) non-banking financial institution registered with the Reserve Bank of India (RBI) was founded.
Since its inception, TibFin has catered to the loan needs of small and medium Tibetan businesses through its low-interest loan services. Around 40 crores of the loan amount sanctioned in the year 2017-2018 were repaid 100%.