Tamil Nadu Chief Minister MK Stalin on Monday requested banks to join hands with the State government in reviving the Covid-battered economy by way of speeding-up loan sanctions and disbursements to self-help groups, MSMEs, self-employed, farmers, students, fishermen and food processing units, among others.

“As the pandemic crippled the economy, the State government is faced with an immense challenge of restoring it in the coming days. In order to improve the livelihoods of people, we request banks to join hands with the State government,” he said while addressing the Special State Level Bankers’ Committee meeting here.

He urged banks to consider all applicants seeking support under PM SVANidhi, a special micro credit facility for street vendors, who have been affected by the pandemic.

Since MSMEs play a vital role in the economic growth of the State, the Tamil Nadu government has already announced some measures for their survival. In recent years, 137,429 applications were recommended for loans by banks, but only about 36 per cent have been accepted. This has to increase, he said.

Kisan credit cards

While urging the banks to extend educational loans to students from socially-backward sections, Stalin said that till date, 31.09 lakh kisan credit cards have been issued in the State. He urged banks to accelerate the process in order to issue the remaining 7.16 lakh cards in the State.

There are about 104 applications of food processing units pending with various banks. Banks could accord priority to sanction loans to these applicants as it will help the farmers to fetch higher prices for their produce, he stated.

Stalin also urged banks to consider lending to fishermen who are in need of buying deep sea fishing vessels/boats as the fishing and seafood industry was undergoing modernisation.

The meeting attended by State Minister for Municipal Administration KN Nehru, State Finance Minister Palanivel Thiagarajan, top officials of the State government, Partha Pratim Sengupta CMD & CEO, IOB and representatives from the RBI, Nabard, Indian Bank, State Bank of India, Canara Bank, Bank of Baroda, ICICI bank, HDFC Bank, among others.

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