Tamil Nadu - Salem   

‘Bankers ignoring directives on loan disbursal’

SALEM: The Salem District Small and Tiny Industries Association has urged the Union Finance Minister, P. Chidambaram, to remove the “difficulties being experienced in the disbursal of loans for education and under Prime Minister’s Rojgar Yojana (PMRY), mainly due to the non-cooperation of the nationalised banks in Salem district.

The association president, M. Mariappan, who submitted a petition in this regard to the Minister here on Tuesday pointed out that the education loan could be sanctioned up to Rs. 4 lakh without any collateral or third party guarantee and for loans from Rs. 4 lakh to Rs. 7.5 lakh, collateral security should not be insisted but third party guarantee be furnished. However, most of the banks were insisting on collateral security as well third party guarantee for all loans ranging from Rs. 50,000 to Rs. 7.5 lakh. Also, the bankers were sanctioning loans to certain professional courses only, he said.

As far as the PMRY loans were concerned, the guidelines of Indian Bank Association stipulated that loans could be sanctioned to entrepreneurs in tiny sector up to Rs. 5 lakh without any collateral security. But in Salem district, no bank had advanced loan to any tiny sector unit without collateral security, he added.

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