Several people in Coimbatore who have been sanctioned loans under subsidy-linked schemes of the Tamil Nadu Adi Dravidar Housing and Development Corporation (TAHDCO) are awaiting release of the subsidy, which is required for the loans to be disbursed.

Under the scheme, eligible beneficiaries can avail themselves of bank loans for income-generating activities, with TAHDCO providing a capital subsidy subject to the scheme’s limits. In cases where the subsidy is linked to the loan, its release is required for the loan to be availed of.

T. Ganeshan, a beneficiary who was sanctioned a subsidy-linked loan, said he had worked as an automobile mechanic in Coimbatore for about 20 years before starting his own workshop a year ago. He had applied for a ₹10 lakh loan to purchase additional equipment for the workshop, with a ₹3.5 lakh subsidy. Though the loan was sanctioned, the amount had not been disbursed as the subsidy had not been released, he said.

M. Dhandapani, a taxi driver who had applied for a loan to purchase a car and operate it as a taxi, said he had been waiting for the subsidy for the past 10 months. As the subsidy had not been released, he was yet to avail himself of the loan, he said. Officials had told him that the State government had not released the subsidy amount.

A TAHDCO official in Coimbatore said that the State government was yet to release the subsidy amounts for beneficiaries across all 38 districts. Nearly 100 beneficiaries in Coimbatore were awaiting the subsidy, the official said. Once the subsidy is received, the sanctioned loan amount will be released to the beneficiaries, the official said.