Banks should expand its housing loan for all those state government employees who were eligible to avail the same, he said at function where an agreement was signed between the state government and State Bank of India in this regard.
The public sector banks should liberally sanction housing loan to the people in view of growth in the housing development sector in Bihar, he said and described as inadequate a total of Rs. 770.3 crore provide to 12039 employees by different banks in 2011-12 in which the SBI's share stood at Rs 241 crore to 4648 government employees.
He also urged the government employees to avail maximum benefit of housing loan after the agreement with the SBI and asked the latter to carry out a campaign among the employees to encourage them to take loan.
Modi asked banks to provide vehicle loan to the government employees at cheap rate so that the people could realise twin dreams of house and vehicle.
The agreement was signed by the Principal Secretary (Finance) Rameshwar Singh and SBI's Patna Division General Manager Jivandas Narayan.
Speaking on the occasion, SBI Managing Director A Krishna Kumar appreciated the state government for signing an agreement with the leading public sector bank for housing loan to its employees and said that it was the first such instance in the country.
Under the agreement, the SBI will sanction housing loan at the lowest interest rate without processing fees for housing loan upto Rs 30 lakh to be repayable over 30 years, he said.