PMFBY certificate holder denied loan despite pre-sanction letter

Dhenkanal: A woman applicant, prize holder of Pradhan Mantri Fhasal Bima Yojana(PMFBY), was recommended by the Department of Horticulture and approved by the State-level Committee, as she was eligible for seeking loan with more than 30 percent subsidy. Her project was food preservation to be taken up at a new centre in Dhenkanal. She is Sabitri Sukla (49).

According to official sources her application was forwarded with formalities to Union Bank, Dhenkanal, over eight months back. To process the application, the bank branch manager sought additional documents, like NOC from previous loan disbursement bank, certificates and plan design and authentication letter of the department, and subsidy confirmed letter of Horticulture authorities and approval of the district-level committee headed by the Collector .

She had to comply with all letters and documents from time to time as sought by the manager. However, earlier the bank had issued the pre- sanction letter to Sabitri. This was informed to the department and the district administration

The subsidy letter lapsed because of inordinate delay by the bank, she alleged. The bank could have checked my CV before issuing the pre-sanction letter. It has already received no dues clearance but was buying time for eight months. Finally it said 'no to bank loan' for the food processing proposal . The Deputy director, Horticulture, and the assistant horticulture officer often apprised the bank manager [then manager] and the earlier manager who had issued the pre-sanction letter to her . Prior to Union Bank, the department had sent the proposal to UCO Bank Dhenkanal main branch, but it declined as there is no land in her name

Though she has land in the name of her father-in-law and NOC was submitted by her family if she uses the land for the project.

As an entrepreneur Sabitri is trained by department of MSME. She was often offered letters of ORMAS, Horticulture and Agriculture to open stalls in various melas in Odisha. She has been promoting indigenous rare pickles, dry food products, foodgrains and organic and herbal products.

The Horticulture department had recommended her application and sanctioned subsidy also at the State-level meeting. This has been communicated to the Dhenkanal Union and UCO Banks also. Her husband was also an entrepreneur who worked jointly with her for 15 years and passed away in April 2020. Sabitri has urged the RBI for immediate intervention and take action against her harassment for months. The bank has declined to sanction loan finally without any written communication to her. But earlier it had issued the pre-sanction letter for consideration of the project under government subsidy.

She asserted that the bank manager had visited her home and the proposed land before issuing the pre-sanction letter. She has no pending dues in any bank. Digital technology which shows her 'civil status 'is not matching her reality on bank status, so she has sought RBI support to resolve the issue.

However, the Union Bank Dhenkanal branch manager told this paper that she had applied during the tenure of his predecessor.