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‘Cultivate habit of repaying bank loans promptly’

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Save for the future: Chairman and Managing Director, Indian Bank, M.S. Sundara Rajan, addressing a Total Financial Inclusion meeting, in Udhagamandalam on Wednesday.
Save for the future: Chairman and Managing Director, Indian Bank, M.S. Sundara Rajan, addressing a Total Financial Inclusion meeting, in Udhagamandalam on Wednesday.

Special Correspondent

SHG concept has helped many improve quality of lives; Indian Bank has given Rs. 1500 cr. as loan to SHGs

Udhagamandalam: The need to cultivate the habit of repaying bank loans promptly, was emphasised by the Chairman and Managing Director, Indian Bank, M.S. Sundara Rajan, here on Wednesday.

Presiding over a function organised by the Coimbatore circle of the bank to mark the completion of Total Financial Inclusion (TFI) by all its branches in the Nilgiris, he said that the society viewed non-repayment of bank loans as a shame.

He said that the people should not give importance to persons who made beneficiaries wilful defaulters by asking them to wait for loan waiver schemes. Stating that the self-help groups concept has helped many improve the quality of their lives, he said that the Indian Bank has given loans to the tune of Rs. 1500 crore to two lakh groups.

The percentage of recovery was almost one hundred. Pointing out that the bank had branches which dealt exclusively with SHGs and the implementation of micro-credit schemes, Mr. Sundara Rajan said that more were on the anvil.

Underscoring the importance of education, he exhorted the people to accord the highest priority to educating their children. As education loans the bank has so far given Rs. 1,000 crore.

Stating that up to Rs. 4 lakh no security was necessary, he said that if anyone laid down such conditions the affected persons should lodge a complaint with him through a post card.

All the 1,501 branches of the bank would be linked to the core banking system by March.

Adverting to India’s rapidly growing Gross Domestic Product, he said that every family should have at least one bank account. Though the banking sector has developed considerably only 40 per cent of the population used banks.

By 2015 or 2020 the Indian economy will be a model for the world.

While India’s economy was growing at the rate of 8.5 per cent, Tamil Nadu has touched 12.3 per cent.

The Deputy General Manager, Indian Bank, P. N. Patel said that the bank was a pioneer in implementing the TFI scheme.

The Project Officer, Mahalir Thittam, D.S. Dhanraj said that members of SHGs should be far sighted.

They should not look for short term gains. Every Wednesday grievances redressal programmes will be conducted for SHGs.

There were 1,900 SHGs in the Nilgiris. Since most of those who had availed loans were prompt in repayment, the recovery was 98 per cent.

The Assistant General Manager, Reserve Bank of India S. Veluswami also spoke.

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