To address the critical need of the Tibetan enterprises for start-up and expansion capital, the program will increase access to finance in India through establishment of a pilot revolving loan fund and registration of a local financial institution that will ultimately absorb the assets and liabilities of the pilot loan fund. Findings from a USAID funded study conducted by Dalberg Global Development Advisors found that the regulatory climate is conducive and there is good potential to establish a financially viable Tibetan financial institution in India. Establishing a financial institution is intended to provide a stable and sustainable source of savings and loan services to the full spectrum of Tibetan business owners and entrepreneurs in India, most of whom are unable to access the Indian banking system due to their refugee status.
CTA’s Department of Finance has begun the process of registering and setting up an autonomous Non-Banking Financial Company (NBFC) called Gangjong Development Finance (GDF) Private Ltd. A team of Tibetan staff has been recruited to form an enterprise finance team under the Social and Resource Development Fund (SARD). A Managing Director is currently being recruited. An office for the team will be established on the CTA campus in Dharamsala, and a customized financial services management information system (MIS) is being designed by an IT consultant.
The first round of loans from the pre-NBFC pilot loan fund were made to almost 1000 sweater sellers. The second round in 2018 will provide loans to both sweater sellers and small Tibetan businesses. Application for NBFC license will be filed in 2018.