Judge asks banks to educate borrowers

 Principal District and Sessions Judge M.A. Shashikala has advised banking institutions in the district to inform borrowers of all related matters such as interest rates while granting loans.

Speaking after inaugurating an extension counter of the Pragati Gramin Bank on the court premises here on Tuesday, she said that many customers failed to repay loans on time because of lack of knowledge.

Several customers were hit by huge interest accumulation, which was tough to deal with.

“There are instances where banks fail to educate borrowers on aspects such as interest rates, which are crucial in loan disbursal. Gullible customers would, in later days, have to face the music,” she said.

Ms. Shashikala asked banks to adopt a humane approach while dealing with their customers.

She said this applied primarily to rural banks owing to the nature of their clientele.

“As I am from a rural area, I know the difficulties village people face while obtaining and repaying loans. Not every borrower deliberately turns defaulter, but sometimes circumstances force them to do so,” she said.

In his address, president of the District Bar Association H.M.S. Nayak said that with the opening up of the extension counter, petitioners would be benefited.

Bank chairman K.S. Prabhakar Rao, thanking Ms. Shashikala for providing space inside the court premises for the extension counter, said that on the first day itself the counter received deposits totalling Rs. 1 crore with over 400 customers opening accounts.