The children of Kozhikode have a lesson or two to teach all those who borrow money from banks and avoid repayment some way or the other.
There are around 5,000 students in various schools in the city who owe the Calicut City Service Cooperative Bank for their bicycles. A few months ago, the bank introduced a one-of-its-kind scheme in which bicycles were provided to the students in city schools upon interest-free loans. The students are to pay back the loan only in two years, and the only guarantee the bank sought was that from their mothers.
The bank was in for a pleasant surprise. “There are not many students who skip the instalment. They have to pay an amount of less than Rs.200 a month and I have seen that the students are very prompt in paying the instalments. Very often, it is not the parent who pays up, but the child himself/herself who comes directly to the bank with the money they set aside over the month,” said Saju James, General Manager of the bank.
“The attitude of the children is very refreshing when all around we find people who take unnecessary loans from banks, live a lavish life, and avoid paying back. It is good that a culture of paying back the loan is inculcated in the children at a very young age,” Mr. Saju said.
The bank had initially planned to give 5,000 bicycles to students of schools within the Kozhikode taluk over two months, but with the incessant flow of applications, they had to increase the number. Very often, the cycle company was not able to deliver the cycles on time and the students were frustrated. But now the problem was solved and all students who applied have been given cycles, Mr. Saju said.
Scheme for women
The overwhelming response to the scheme was a great boost to the bank, which went on to introduce a similar scheme for women to buy scooters. But here, loans are not interest-free. Around 1,500 scooters have already been distributed under the scheme.
