Vaiko accuses IOB of using bully agents to retrieve loans

By A Harsha Vardhan Published on Jun 30, 2018 05:34 PM IST

Chennai: MDMK chief Vaiko accused public sector bank IOB today of appointing private agents to bully students, farmers and small enterprise owners who have taken a loan from them.

In a statement issued by his party, Vaiko said, "Public sector lender, Indian Overseas Bank has appointed a private agency called ARC to retrieve loans given to students, farmers and, micro and small scale business proprietors. The agents employed by them act like usurers and bully the borrowers."

"The law states that students taking education loans under Rs 4 lakh do not have to provide any guarantee and can avail 5-7 years as a grace period to repay it. But these private agents go to the student's house as soon as they complete their education to bully and humiliate the parents to repay the loans," Vaiko said.

Vaiko also alleged that the agencies are required to give the banks only 15 per cent of the sum of the loans they recover.

He said, "The agency keeps the remaining amount as service charge. This is the reason why the loanees are harassed by the bullies of the agency."

"If IOB announces that it is enough if loanees repay only 15 per cent of the money they borrowed, the people would themselves come forward and do it. It is not right to harass and force the people into submission," he added.

Vaiko in his statement urged the Central government to make sure IOB immediately stops sending these private agents who act like usury gangs to retrieve loans.