The State Government will review the loans provided by banks under several schemes every month. The Department of Finance (DoF) has been asked to form a subcommittee in this regard.
In view of the various banks’ poor performance in sanctioning agriculture loan and other loans to people under self-employment schemes, the DoF is considering constitution of a subcommittee that would review work progress every month.
The subcommittee would be formed along with the departments executing various welfare schemes, including the self-employment schemes.
The panel would consist of Government and bank officials who would review the bank loans every month at a meeting. They would go through the State-level Bankers’ Committee (SlBC) report, sources said.
Notably, the SlBC reviews once in three months the bank loans provided under several schemes executed by both Union and State Governments. In an attempt to hear grievances, senior Government officials direct bank officers to provide timely loans to people under the schemes.
While the Government has directed 21 nationalised banks, eight private banks and three Gramya Banks for providing loans under various schemes, the banks are allegedly not sanctioning loans, for which the target could not be achieved under the Central schemes like the PNEGP and the NUlM in the State.
Similarly, interested candidates seeking to set up small enterprises are also not getting loan from the banks, sources said. The nationalised and private banks also do not show interest in sanctioning loans to farmers.
However, the cooperative and Gramya Banks have registered the highest percentage with over 70 per cent in providing loans to farmers, the sources said.