In a statement during the Zero Hour of the Rajya Sabha, Member of Parliament Sadanand Shet Tanavade emphasised the need for a reassessment of credit distribution policies by banks in Goa. He raised concerns about the challenges faced by small and micro enterprises, which are critical to the state’s economy and job creation.
Tanavade pointed out that despite banks in Goa holding substantial deposits, the credit disbursement remains significantly low, with the credit-deposit ratio falling far below the national average. He noted that nationalized banks in the state have consistently failed to meet lending targets under key government schemes, such as the Prime Minister’s Employment Generation Programme (PMEGP). As a result, aspiring entrepreneurs, particularly youth, face significant barriers in accessing credit due to stringent collateral and guarantor requirements.
The MP further highlighted that educational loans are also under-disbursed, leaving many students without the financial support necessary to pursue higher education. According to Tanavade, this overly cautious and risk-averse approach by banks is hindering Goa’s economic growth, restricting job creation, and stalling industrial development.
Despite having a well-established banking network, Tanavade argued that Goa’s banks have been inadequate in meeting the financial needs of critical sectors like tourism, housing, education, and agriculture. He stressed the urgent need for banks to revisit and improve their credit distribution policies to create more opportunities for job creation, industrial growth, and economic expansion in the state.
Tanavade called for timely intervention to empower small businesses in Goa, enabling them to thrive, generate employment, and contribute significantly to both the state and the nation’s economic development.
