Meghalaya government steps in after banks deny loans to SSA, aided school teachers

The Meghalaya Education Department has intervened after reports surfaced that teachers and non-teaching staff in Samagra Shiksha schools and government-aided institutions were being denied loans by banks.

According to the department, several public sector, private, and cooperative banks in the state have rejected applications from employees under the categories of SSA, Deficit, Adhoc and Grant-in-Aid schools. Rejections were often linked to irregular salary disbursements or the “contractual” label attached to their employment status.

The government clarified that while salaries may not always follow a strict monthly cycle, they are assured and continue until retirement, 58 years for Samagra Shiksha teachers and 60 years for others. Officials also stressed that the term “contractual” does not imply insecure employment but is merely used to differentiate them from permanent government staff.

Reassuring the banking sector, the Education Department underlined that these employees are financially stable, reliable borrowers, and their service is secure. It directed banks to treat their applications at par with other salaried employees.

The department further reminded banks that any refusal must be accompanied by a written explanation, in line with Reserve Bank of India norms. Arbitrary rejections, it warned, could invite action under existing laws.