No collateral for loans to SC/ST: FM
Posted online: 2011-03-11 14:15:03+05:30
New DelhiThe government today said the provision of collateral
security for getting loans from banks has been waived for Scheduled
Castes and Scheduled Tribes (SC/ST) as part of measures to grant them
easier access to credit.
"There is no need for collateral security for these sections for
getting bank loans," Finance Minister Pranab Mukherjee told the Lok
Sabha while replying to supplementaries during the Question Hour.
He said banks should not insist on deposits while considering loan
applications under government sponsored poverty alleviation
schemes/self-employment programmes from borrowers of these (SC/ST)
In case of rejection of loan applications of SC/ST, it should be done
at the next higher level instead of at the branch level indicating
proper reasons for rejection, he said.
Mukherjee said banks have been asked to create greater awareness among
SC/STs in order to encourage them to access credit facilities.
"Field staff should contact such borrowers to explain schemes and
their advantages," he said.
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