Government Home Loan: Account shifted to bank without knowledge of employees; pending arrears

KASARAGOD: The accounts of the house building advance loan recipients were transferred to the banks without the knowledge of the employees. The borrowers came to know about the transfer of the transactions of the scheme, which was stopped by the government in 2017, to the banks when they started receiving calls from the banks saying that despite the regular monthly repayments, there were still arrears of lakhs.

The government ended the scheme in 2017 due to financial crisis. The government started this scheme very helpful for the employees 20 years ago. The title deed of the place was registered in the name of the governor. The title deed of the teachers was kept at the DDE office and that of the other employees at the district Collectorates. The government directly disbursed the loan amount to the employees through the treasury. The repayment amount was being deducted from the salary through Spark. There is no possibility of loan arrears as the amount is deducted directly from the salary. As the bank told the employees that they should pay lakhs of rupees, they suspect that the repayment amount has not been deducted and given to the banks.

Need answers

• Why only the loan repayment of the discontinued project was transferred to the banks
• How accounts were changed without obtaining the signatures of the beneficiaries
• Relationship of borrowers with banks
• Not informing the borrowers about the new procedure

"When I contacted Punjab National Bank, the bank's reply was that you should contact the government. When I asked about the phone call coming from Mumbai, the bank said that it is contracted to the agency.'

- A teacher who took loan