Tamil Nadu - Salem   

Banks asking security for loans up to Rs. 5 lakh to be monitored

SALEM: The Salem District Small Scale and Tiny Industries Association has asked the entrepreneurs to report if the banks demand for collateral security for loans up to Rs. 5 lakh for starting small scale units.

Acting on a petition from the association, the Reserve Bank of India sent a letter to Association President K. Mariappan to forward the list of banks, which were refusing to provide loans up to Rs. 5 lakh without collateral security.

Mr. Mariappan earlier sent a memorandum to Union Finance Minister Pranab Mukherjee stating that a number of banks in Salem district were refusing to provide loans to the entrepreneurs, who were willing to start small scale enterprises, without collateral security.

Even the candidates who were selected by a district-level committee under the Prime Minister’s Employment Generation programme were asked to provide collateral security to get loans by the banks.

The entrepreneurs are asked to report the issue to the Association’s office functioning opposite to the Fairland’s Police station in person or by post.

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