Tamilnadu Foodgrains Merchants Association has urged the Chief Minister to issue an order directing banks not to ask for a new memorandum of deposit (MoD) of title deed from manufacturers and traders who want additional 25% loan.

In a press release, association president SP Jeyapragasam said the Central government had allowed traders and manufacturers to get a loan of 25% in addition to their existing loan. The traders and manufacturers had already received loans from banks by registering their assets to get a MoD of title deed.

At present, the bankers were extending the loan limit by up to 25% based on the same assets that were pledged earlier. However, they were insisting on a new MoD title deed which costed a good sum. Therefore, the State government must issue an order directing banks not to ask for a new MoD of title deed, the release said.