He was participating at an "Education Loan Mela",organised by the Bankers' Coordination Committee in Sivaganga.
He also said the impact of the education, being given on large scale now, would be felt only after ten years.
The government wanted to help those who were involved in the nation building activities whether constructing roads or houses.
Education loan had benefited backward class people in a big way he said, adding sons of barbers, building workers, panchayat clerks among others had been covered under it.
Stating that Tamil Nadu was among the states which benefited most by the scheme, he said "Any state where Education Loan had been given to a large number of students will definitely be an advanced state in the coming years."
There was a time when only a section of the people could become officers, judges etc. Now a Backward class person had become a Supreme Court Judge, Chidambaram.
The Finance Minister said banks should give help all those who had applied for loan in the Mela,and should not give lame excuses like jurisdiction.