Finance Ministry pulls up Haryana over loan disbursal

The state of Haryana has failed to meet the target given by the central government’s Finance Ministry to disburse loans for educational purposes to students.

Written by Ishfaq Naseem | Panchkula | Published: June 11, 2013 2:48 am

The state of Haryana has failed to meet the target given by the central government’s Finance Ministry to disburse loans for educational purposes to students. From the target of Rs 1,210 crore given to the banks,only 88 percent target has been met with loans to the tune of Rs 1,069 crore being released in the 2012-13 financial year.

The Finance Ministry has taken stern note of this and has asked the state to improve its loan disbursal,noting that the loan disbursal of the state in proportion to its population has been dismal.

Against the population of 2.5 crore,a loan amount of Rs 1,069 crore was given only to 45,343 beneficaries,which the central government has said is insignificant,notes a report of the state level bankers committee (SLBC),an apex body of the banks in the state.

As per the SLBC figures,the central government’s Finance Ministry had conveyed a target of Rs 1,210 crore to the state government for the financial year of 2012-13 through a letter dated October 11,2012. However the loan released was far less than the target.

The disbursal of loans has been low despite the fact that the percentage of non-performing asset (NPA) under the education loan category was less.

Out of the total outstanding amount of Rs 1,069 crore under the education loan category scheme as of March 2013,a sum of Rs 51.9 crore,which is 4.8 percent of the total loan amount,has become the NPA. Out of the collateral free loans of Rs 601 crore under the education loan scheme,a sum of Rs 34.14 crore,5.68 percent of the total loan amount,became the NPA.

The central government has advised that banks hold education camps on a regular basis to improve on the education loan disbursals.

Though the state has failed to achieve its targets,there has been a growth in the loan disbursal on a year-on-year basis. The 2012-13 financial year witnessed a growth of 15 per cent in disbursal compared to the previous year. The state of Haryana registered an increase of Rs 138 crore from Rs 930 crore as on March 2012 to Rs 10,693 crore as on March 2013,showing a growth of 15 per cent.

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