Bank loan

Debate intensifies over co-op bank loan waiver – The New Indian Express


Through Express news service

CHENNAI: Former minister and AIADMK member Sellur K Raju on Wednesday urged the state government in the assembly to take action against those who committed irregularities while forgoing cooperative bank loans. During the response to the request for grants for the cooperation department, Minister I Periyasamy said that a huge sum of money had been swindled in the name of waiving cooperative loans.

He then listed the loan amount above the eligible limit that was disbursed by the major agricultural cooperative banks. “Loans totaling 516 crore rupees were disbursed in violation of cropland eligibility criteria, and among them 503 crore rupees were disbursed in Salem, Namakkal and Erode alone,” he said. he declares.

Periyasamy added that some loans had also been disbursed for barren land. In addition, many loans that were disbursed after the due date were also canceled. “Due to this blatant violation of the rules, many ineligible individuals received the loan waiver. Many ineligible people have also benefited from a waiver of gold loans, ”he added.

Speaking, former Minister of Corporations Sellur K Raju said his party government did not ask anyone to commit irregularities in the loan forgiveness process. “The state government should take action against those who have violated the law in this regard,” he added.

The panel will soon define the right cooperative service

Minister I Periyasamy announced on Wednesday that a committee would be set up to redress the functioning of the cooperative department. During the reply following the debate on the grant applications for the Cooperation Directorate, he also announced various other reforms for the sector:

Tuition fees for students of cooperative technical institutes will be covered by the government

Direct purchasing centers will be set up in all districts. Steps already taken to launch 68 CPDs in 19 districts

Interest rates for loans below Rs3 lakh for women’s self-help groups will be reduced from 12% to 7%

Loans will be granted to widows and poor women at an interest rate of 5% through cooperative societies

Will increase the sale of Mangalam turmeric, produced by the Erode farmers’ cooperative society

Sales of tamarind from the Pennagaram region will be encouraged

The number of cooperative medical stores will increase from 303 to 600 over the next five years

A college of arts and sciences will be created in Dindigul

A high-level panel will be formed to study the functioning of cooperative PDS stores

70 ATMs on behalf of cooperative banks will be installed throughout the state


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