The Hindu : Tamil Nadu News : Repay loans on time: Chidambaram tells farmers

Online edition of India's National Newspaper
Monday, Nov 08, 2004

Tamil Nadu

Tamil Nadu

Repay loans on time: Chidambaram tells farmers

By Our Staff Reporter

KARAIKUDI, NOV. 7. The Union Finance Minister, P. Chidambaram, today appealed to farmers to repay bank loanson time so that they would be eligible for fresh loans.

Speaking at a function organised by the Indian Overseas Bank in Devakottai near here to disburse loans, he said when the Government followed a liberal policy in granting loans, they should reciprocate by repaying them.

The Congress-led United Progressive Alliance Government fixed the target of giving farm loans of Rs.1, 60,000 crores in three years.

Though it was a "hard target," the bankers were striving to achieve the target. He advised the bankers to follow `liberal rules' while sanctioning loans to `deserving' people, particularly students. Officials would not be questioned if there were defaulters here and there, he assured.

"Banking is a business, bad debts are bound to happen and some people may fail to repay loan, but action will not be taken against officials, who sanction loan to qualified people," said Mr. Chidambaram.

He disbursed assistance to the tune of Rs.2.14 crores to 252 self-help groups and an education loan for Rs.1 crore to 75 students.

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