hyderabad a go issued by the social welfare department on the new year eve has come as a shocker to small entrepreneurs especially the minorities in a new rule that defies logic the state government has lowered the eligibility age for the selfemployment scheme for minorities and backward classes from 55 to 40 years the department issued the go based on the recommendations of group of ministers on implementation of selfemployment schemes the government did not mention the reason for lowering the eligibility age however sources point out that the decision was taken based on the premise that people above 40 years are less likely to repay loans the move will result in lack of financial assistance to a large chunk of selfemployed persons artisans and entrepreneurs who are otherwise eligible for bank loans hitherto the state government extended financial assistance with a subsidy of rs 20000 to beneficiaries up to the age of 55 years about onethird of the applicants who avail the facility fall in the age group of 4055 years however the new rule has simply made them ineligible to get subsidycumloans although the subsidy has been raised to 50 of the loan subject to a ceiling of rs 1 lakh from the current rs 20000 lowering of age limit will be a dampener as thousands of selfemployed persons might now find it difficult to expand their business minority rights activists fear that the new rules will lead to a fall in disbursal of bank loans the performance of the apsmfc vis vis banks has been quite poor ie just above the halfway mark the corporation could achieve a target of just 52 per cent during 201213 and is yet to begin the process for 201314 though only 75 days are left for the financial year to end the centre has issued directions to banks that they should reach a target of 15 per cent within the priority sector lending in providing financial assistance to minorities but the record has been far from satisfactory with ap registering a decline from 675 during 201112 to 640 during 201213 and 603 by september 2013 said dr ma rahman chairman of federation of muslim welfare associations of ap syed vilayat hussain of aps mfc said that the process of selection under the new rules had begun and would be completed soon the state government has sanctioned rs 100 crore for 26618 beneficiaries this year we will be able to achieve the target within a short timeframe he said selection of beneficiaries is at mandal level and will be completed before january 21 he added syed naseer ahmad advocate and minorities rights activist from vijayawada argued that beneficiaries would be at loss as long as the apsmfc is registered under the companies act other finance corporations including those of the bcs are registered under the societies act he said a body under the companies act is profitoriented while the one registered under the societies act is meant for welfare he added