Palakkad: The registrar of co-operative societies has given a nod to provide loans to those who own less than three cents of land in the state. The action was taken following a complaint filed by social activist Chandran Chami with the chief minister.

The complaint pointed out the provision in the co-operative act that does not allow loans on collateral to those who own land less than three cents in area and without a house. This was causing hardship for many financially backward people, mentioned the activist. 

According to the order issued by the Registrar of Co-operative Societies, the loan was denied earlier due to the difficulty in claiming back the amount granted as a loan upon these security. The bank’s governing body has taken a decision regarding the granting of loans to those who have less than three cents.

It even specified that banks can only provide loans after ensuring that the value of the land is enough to repay the loan and that it is subject to the rules. The decision was made based on the reports of the joint registrars of various districts.