Participating in a loan mela organised by Canara Bank at nearby Tirumangalam city, he said Tamil Nadu is an advanced state in many ways due to the vision of late Chief Minister K Kamaraj, who had developed schools and introduced noon-meal schemes, encouraging children to go to school.
"Similarly the education loan scheme introduced by the UPA government is a great revolution and will have its impact in another 10 years and make India an advanced nation in the coming years," Chidambaram said.
The Finance Minister pointed out that backwardness in education was the reason for many states not being developed, despite having natural wealth and industries.
The minister said one out of four education loans given in the country had been received by students from Tamil Nadu. Its impact would also be felt after 10 years when one out four persons employed in big companies and government services would be from the state.
He said the recent meeting of Bank Chairmen at Delhi had been informed that Rs 58,000 crore worth education had been sanctioned and the balance of Rs 12,000 crore would be given in another five months.
Chidambaram also praised the 'farsighted' vision of former Prime Minister Indira Gandhi for nationalising banks. "But for that act, it would not have been possible for the poor to avail of loans," he said.
Without mentioning the name, he said some people appear like magicians and claim to have a magic wand to develop the nation. "I don't respect such people. There is no way to develop the nation using magic. The only way is to introduce schemes that will help the next generation."
"Congress does not think about next elections, we think about the next generation," he said.