(a) whether the Government has received complaints regarding refusal
in granting loans by banks under various Governmental schemes;
(b) if so. the details thereof; and
(c) the steps taken/being taken by the Government to provide
easy and soft loans to persons belonging to weaker sections?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b): General complaints are received regarding various aspects of implementation of the Government
Sponsored Schemes like Swarnajayanti Gram Swarojgar Yojna ( SGSY), Swarna Jayanti Shahari Rojgar Yojna
(SJSRY) and Prime Minister`s Employment Generation Programme (PMEGP) regarding delay in sanction/disbursement
of loans by banks, etc. These are being periodically reviewed by the District Level Consultative Committees
and State Level Bankers` Committees and corrective measures taken for proper implementation.
(c): Loans to Weaker Sections form part of Priority Sector Lending (PSL) of Domestic Scheduled Commercial
Banks.
As per extant guidelines of Reserve Bank of India (RBI) on PSL, a target of 10% of Adjusted Net Bank Credit
(ANBC) has been stipulated for Weaker Section under PSL.
With a view to ensure smooth flow of credit under PSL including Weaker Sections,
the following has been advised by RBI to banks:
(i) Field level functionaries of banks to ensure there is no inordinate delay between
sanction and disbursement of loans;
(ii) Documentation process is kept simple by banks;
(iii) Loan applications be disposed off within 15 days and not later than one month;
(iv) Branch Managers be vested with adequate discretionary powers to sanction loans under SGSY, etc.