Deputy Commissioner P.C. Jaffer has urged banks in the district to give out more educational loans.

“This will help more young people take up higher education. We need to promote this as human resource development is one of the tools of social and economic mobility in this backward district,” he said during the annual district credit plan progress review meet here on Thursday.

Dr. Jaffer observed that banks routinely sent back educational loan applicants citing technical problems and low repayment rates. The Deputy Commissioner said most of the 29 banks in the district had not provided complete data about disbursal of priority sector loans and other important information from 2012–13. Dr. Jaffer said most banks had failed to reach the 60 per cent credit-deposit ratio specified by the Reserve Bank of India, achieving only between 30 per cent and 40 per cent. This meant that for every Rs. 100 collected as deposits, only Rs. 30 to Rs. 40 was given to people as loan.

He urged banks to target 100 per cent disbursal.

He also urged banks not to resort to forceful recovery of loans during drought.

Banks should ensure that farmers and other beneficiaries get subsidies released by the government on time, he added.

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