'Banks should not insist on collateral sercurity

Puducherry, Dec 17 (UNI) Nationalised banks with branches in Puducherry should sanction loans to students for professional courses without insisting on collateral security, Chief Minister N Rangasamy said today.

Opening a bank branch at Kurumampet near here, Mr Rangasamy said banks should adhere to Union Finance Minister P Chidambaram's directive that banks should be liberal in sanctioning loans.

Puducherry showed rapid progress in education, agriculture and industrial sectors, allaying the ''fear'' that business and industrial sectors would suffer due to implementation of VAT, he said.

The Chief Minister disbursed loans to the tune of Rs 17 lakh on the occasion.

UNI