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Thursday, May 15, 2014

Easy loan to common man?


Kerala Chief Minister Ommen Chandy taking steps for availing loans to the common man at low interest rates is welcome. He said”steps will be taken for availing loans at low interest rates. The State Bankers’ committee meeting will be convened on May 22 to discuss the matter.” The CM has taken such a decision on the back drop of suicide  of a few people who fell in the trap of blade mafia in the state. Nevertheless, the feasibility of CM’s step for easy loan is doubtful.

The blade men issue loan to without much guarantee. Their only guarantee is the quotation gang that collect the pay back. Even high-tech bankers, name to none, resort to this method to get back the dues. The nationalized banks, banks in the cooperative sector, or the KSFE could not lend money without proper guarantee. And the process of giving guarantee takes time and hence quick and easy loan as practiced by blade men is not possible for any financial institution under government control. This means minister’s step is only a soothing remark without any viability.

Also the statement that steps should be taken to speed up disbursement of loans by the Matsyafed and Kudumbasree project is also doubtful. How could a cash-crunchy state exchequer lend easy loan to people?
The bankers who issued education loans on the basis of the rhetoric of  certain ministers are now in doldrums because of non-repayment.  And in that context no banker would undertake easy loan to common people who have only sky above and earth below.


K A Solaman

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