Allotment of Rs.37,500 not enough to construct a house, says Chidambaram
HOUSing FOR the POOR: Union Finance Minister P. Chidambaram launches the rural housing scheme of Indian Bank at a function held at Kandanur in Sivaganga district on Sunday.
SIVAGANGA: “The allotment of Rs.37,500 under the Indira Awaaz Yojana is not sufficient to construct a house. Hence, banks will provide a loan of Rs.20, 000 loan to the beneficiaries at the rate of just 4 per cent,” Union Finance Minister P. Chidambaram announced on Sunday.
Launching the special loan scheme at a function organised by Indian Bank at Kandanur, his hometown near here, he said the cheapest interest rate would help the beneficiaries build a good house. The loan amount would be made available immediately after the confirmation of allotment of houses.
Mr. Chidambaram said all banks would be asked to give priority to the implementation of the scheme. The Centre would extend the benefits of the scheme to all parts of the country.
He said the Government had taken steps to increase loans for agriculture, education and small and medium enterprises in a bid to empower the people to break out of the clutches of usury. None, including big industrialists, could progress if they got loan from moneylenders at an exorbitant rate. The banks should extend loan at a fair rate to wipe out usury.
He said the lending of loans to various sectors had shot up after the United Progressive Alliance assumed office at the Centre. Loans to the tune of Rs.2 lakh crore was extended to the agriculture sector during 2006-07. It was just Rs.86,000 crore before the UPA assumed office. Last year, Rs. 13,424 crore was given as education loan.
M.S. Sundarrajan, Chairman and Managing Director, Indian Bank, said the bank had introduced online doorstep banking in a village in Puducherry. It also introduced biometric operation. Small and medium enterprises, education and self-help groups were his bank’s priorities. Collector M.A. Siddiqe, MLA N. Sundaram and A. Subramanian, Executive Director, Indian Bank, spoke.
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