Tamil Nadu - Nagapattinam   

Banks told to lend loans to students

Staff Reporter

Minister warns of action against managers who fail to comply

NAGAPATTINAM: The Centre has directed all nationalised banks and other commercial banks to grant educational and other loans without delay, Union Minister of State for Finance S.S. Palanimanickam said on Wednesday.

The Minister, who distributed Rs.10.65 crores in loans to 1,722 beneficiaries at a function organised here by Indian Overseas Bank, warned of action against bank managers who refused educational loans to bona-fide candidates. He had received complaints that a few managers of nationalised banks had refused to meet the parents seeking loans for their wards. They had to change their attitude.

Mr. Palanimanickam said the Centre had decided to lend liberally to self- help groups. An individual could be granted loans up to Rs.20 lakhs at the rate of 7 per cent.

He asked the banks to extend adequate credit to delta farmers for paddy cultivation. Nearly Rs.21 crores, settled as crop insurance to the farmers in the district, was granted to the banks. Mr. Palanimanickam appealed to the beneficiaries to repay promptly so that they could borrow more without any difficulty.

T.S. Sargunapandian, Chief Regional Manager, Indian Overseas Bank, the lead bank of the district, said that of the Rs.10.65 crores of loan sanctioned by all commercial banks in the district, 79 fishermen of the tsunami-hit areas got Rs.2.19 crores for purchase of boats under the Rajiv Gandhi Rehabilitation Package Scheme. Seventy-eight students got Rs.1.44 crores for higher education, 502 SHGs got Rs.2.52 crores and 978 kisans got Rs.3.60 crores.

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Centre directs banks to grant loans to students, SHGs, farmers
Banks told to lend loans to students

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