CALLS have been made for a review of the Government's lending policy after a report of the Director of Audit showed a serious indebtedness by police officers. The chairman of the Legislative Council's security panel, Selina Chow Liang Shuk-yee, said the policy of providing government loans to civil servants should be reviewed to see if it was functioning properly. ''I don't see any reason why the Government has to pay for civil servants' debts. We should examine the ordinances to see if there are loopholes or problems in execution,'' said Mrs Chow. She said it was of grave concern that the efficiency of the police force could be affected by so many officers being burdened troubled with debts. The panel's vice-chairman, James To Kun-sun, said he was ''shocked'' to learn about the serious debt problems of the police. ''You can imagine how serious the situation can be, they have to even come up to the Government for money to pay tax,'' he said. Mr To urged the Government to impose disciplinary action on policemen with heavy debts. The punishment of dismissal should be considered, he added. Investigations should also be conducted on ''extreme cases'' where the loan was spent on prostitution and gambling, he said.