Tuesday, July 19, 2011

Issuance of loan eligibility cards tardy: Lok Satta

The Lok Satta Party today voiced concern over the slow pace of issuance of loan eligibility cards to tenant farmers and the banks’ reluctance to grant loans against the cards.

Lok Satta Party Working President D. V. V. S. Varma pointed out in a media statement that only a little over three lakhs of the more than 50 lakh tenant farmers have so far been issued the cards. As preconditions for grant of loans, banks are insisting on tenant farmers forming into groups, and cooperative credit societies on tenant farmers registering their names with them. Landowners are not facilitating registration of tenant farmers, as they fear loss of right over land with the old Tenancy Act remaining on the statute book.

Mr. Varma wanted the Government to expedite issuance of loan eligibility cards and direct banks and cooperatives to grant loans without any hassles.

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