TN CM announces cut in interest rates for loans in coop banks

Chennai, Dec 27 (UNI) Tamil Nadu Chief Minister M Karunanidhi today announced a cut in the interest rates for loans in cooperative banks in the state.

An official statement here said that after favourably considering the representation from those who borrowed loans from cooperative banks for non-agricultural reasons, Mr Karunanidhi announced reduction in the interest rate from 18 to 12 per cent.

Mr Karunanidhi also announced that with effect from today, the penal interest on existing and new loans was also reduced from three per cent to 1.5 per cent.

A government order was issued to this effect today.

More than 4.53 lakh people, who had taken loan from Primary Agricultural Cooperative Bank, Central Cooperative Bank, Primary Agricultural and Urban Development Bank and the Tamil Nadu State Cooperative Bank (TNSC Bank) would be benefitted to the tune of Rs 100 crore by this announcement.

The release said those willing to get benefit by this, should pay at least 25 per cent of the loan outstanding before March 31, 2007, and enter into an agreement with the bank that the balance 75 per cent would be paid on or before June 30 next year.

The offer of cut in interest rates would be applicable only if the loan amount was paid back according to the government fixed dates, the statement added.

UNI GV PKS BD1522