<p>"There is no need for collateral security for these sections for getting bank loans," Finance Minister Pranab Mukherjee told the Lok Sabha while replying to supplementaries during the Question Hour.<br /><br />He said banks should not insist on deposits while considering loan applications under government sponsored poverty alleviation schemes/self-employment programmes from borrowers of these (SC/ST) communities.<br /><br />In case of rejection of loan applications of SC/ST, it should be done at the next higher level instead of at the branch level indicating proper reasons for rejection, he said.<br />Mukherjee said banks have been asked to create greater awareness among SC/STs in order to encourage them to access credit facilities.<br /><br />"Field staff should contact such borrowers to explain schemes and their advantages," he said.</p>
<p>"There is no need for collateral security for these sections for getting bank loans," Finance Minister Pranab Mukherjee told the Lok Sabha while replying to supplementaries during the Question Hour.<br /><br />He said banks should not insist on deposits while considering loan applications under government sponsored poverty alleviation schemes/self-employment programmes from borrowers of these (SC/ST) communities.<br /><br />In case of rejection of loan applications of SC/ST, it should be done at the next higher level instead of at the branch level indicating proper reasons for rejection, he said.<br />Mukherjee said banks have been asked to create greater awareness among SC/STs in order to encourage them to access credit facilities.<br /><br />"Field staff should contact such borrowers to explain schemes and their advantages," he said.</p>