The State Government of Tripura has, on numerous occasions, advised Banks to sanction loans under PMEGP and Swavalamban schemes strictly as per scheme guidelines. SLBC has received numerous complaints from line departments and PMEGP/Swavalamban applicants regarding many instances where Banks have insisted upon collateral security for sanctioning loans under PMEGP and Swavalamban, in the form of fixed deposits and employee guarantee. DGM and Circle Head Punjab National Bank Circle Office Agartala and SLBC Convener Tripura said this.
He further said, the complaint has been primarily against branches of Tripura Gramin Bank, Tripura State Co-Operative Bank and a few public sector Banks.
It may kindly be noted that applicants of PMEGP /Swavalamban scheme needs to bring 5 per cent of margin money only and any demand for fixed deposits shall defeat the objective of PMEGP & Swavalamban Schemes, which may at times, lead to over / under finance of projects. It is again reiterated that under no circumstances can Banks insist upon collateral security in the form of term deposits and/or employee guarantee while sanctioning MSME loans up to Rs.10 lakhs, as this would be in complete violation of prescribed scheme guidelines.
Kind attention of member Banks is also drawn towards the practice of asking applicants to bring “No Dues Certificates” from other Banks. Member Banks are requested to rely upon CIBIL / Highmarks / Experian / Equifax, etc. reports instead of asking for “No Dues Certificate”.
The SLBC convener said, member Banks of SLBC Tripura are advised to sensitize their respective field functionaries in the context of this letter and direct them to desist from such practices. Future complaints raised regarding similar instances may attract the ire of the State Administration which may lead to reputational loss of Banks.
