Kohima, February 02: The banks are sometimes finding difficult to come forward in giving loans to the general publics because of the existing land owning system in Nagaland.

Because the existing system cannot be mortgaged unlike other States in the country where recording of all the mortgaged deals would be done in a "notified center", explained a senior staff of the State Bank of India, here today.

He disclosed that the Government funds didn't reach to everybody and in this, banks had played a significant role by giving various loans to individuals and groups to help themselves in their business activities and uplift their status.

But the hurdle is the banks could not come forward for giving any loan because of the existing land owning system in Nagaland, the SBI official pointed out.

He further said once that existing system was amended, the people of Nagaland would enjoy tremendous amount of benefits through various schemes formulated by the banks.

He said in many states in the region, people had been doing brisk business and thriving enterprises through bank loans, whereas in Nagaland, people were yet to enjoy this.

The official also didn't buy the argument that land mortgage system would reduce the status of land owning system in Nagaland.

"It (land mortgage) is the only security for the private individuals or groups where the bank would deal with in awarding loans to them," he stated.

If the loanee failed to recover, the bank authority would take necessary steps with regard to the mortgaged land.

Even if the mortgaged land were to be auctioned, it would be within the locals only, the bank official pointed out.

Therefore it was a misconception that such system (mortgage system) would spoil the land owning system in Nagaland, he stated.

Admitting that recovery part was really poor, the SBI official, however, didn't accept the logic that it was the duty of the bank to recover.

"It is rather the duty of the person who have taken loans from the bank to recover in time," he asserted.

"If you take the loans from the banks for some business purposes, is it not your bounden duty to do yourself the recovery job and summit to the bank in time so that you keep maintaining long-term relationship with the bank".

"Everybody wants something but tend to shirk his or her bounden duties to pay back," he said.

"This way the smooth functioning of the system is hampered".

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