The Hindu : Andhra Pradesh News : ‘Poor lending’ by banks flayed

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Andhra Pradesh

Andhra Pradesh

‘Poor lending’ by banks flayed

Correspondent

MAHABUBNAGAR: Collector V. Usharani has expressed concern over the poor percentage of loans extended to the farm sector, Indiramma beneficiaries and self-help groups by the banks in the district.

Presiding over the specially convened district consultative committee meeting of bankers here on Friday she said even though the seasonal conditions had been good this year and 90 per cent of sowing over, only Rs.22 crore worth crop loans were given, while the average lending was around Rs.120 crore by the end of August.

She also said that extending bridge loans to the beneficiaries of Indiramma housing scheme and constructions of about one lakh houses were held up as the bankers were not sanctioning the required bridge loans.

The Collector said that in Krishna and East Godavari districts, a bridge loan of Rs.20,000 each was sanctioned to beneficiaries at the time of basement itself. She said in East Godavari, bankers had extended Rs.400 crore as bridge loans to Indiramma beneficiaries.

Ms. Usharani also referred to other government schemes under DRDA, SC, ST Corporations and Rajiv Yuvashakti where bankers had shown dismal performance in grounding the units.

Education loans

She also expressed dissatisfaction over the sanction of education loans and said that many students had complained that the bankers were demanding security and mortgage of property in sanctioning the education loans.

She requested to the bankers to extend their cooperation to the district administration in achieving the targets set to the banks and asked the bankers to take part in the education loan mela being organised on Monday to clear the applications of students on spot.

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