SBI collects Rs 500 charges for Rs 25,000 loan: Collector

Guntur District Collector BR Anjaneyulu said that for a loan of Rs 25,000 to Rs two lakhs the State Bank of India is collecting procesing charges of Rs 500 while Andhra Bank, also a public sector bank, is charging Rs 250 only.

Guntur District Collector BR Anjaneyulu said that for a loan of Rs 25,000 to Rs two lakhs the State Bank of India is collecting procesing charges of Rs 500 while Andhra Bank, also a public sector bank, is charging Rs 250 only.

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Speaking at a meeting of bankers in Guntur on Saturday, he said that nationalisation of banks has given a right to every eligible person to get bank credit with a reciprocal obligation to remit the debt promptly.

The collector urged the banks to dispose loan applications expeditiously. "The loan applicant made to go round the bank several times. Hence they (loan wanted customers) prefer to approach village money lender who charge exorbitant interest" he observed.