Karnataka - Belgaum   

Plea to correct anomalies in farm loan scheme

Staff Correspondent

Belgaum: Farmers in the State may launch an agitation if the Government refuses to make amendments to the crop loan scheme, to provide loans at four per cent interest, chairman of the Karnataka State Co-Operative Agriculture and Rural Development Bank Limited K. Shadakshari has said.

Talking to presspersons after a meeting with bank officials here on Thursday, he said certain anomalies in the scheme had to be corrected.

For instance, a farmer would cease to get the benefit of subsidised loan scheme if he failed to repay the first instalment on time and thereafter, he would be liable to repay the standing loan at normal rate of interest at 11.5 per cent.

He said the Government had restricted the lending to Rs. 3 lakh, which was not practical.

Tractors and trailer cost much more, he said.

Similarly, the cost of irrigation schemes being taken up by groups of farmers was about Rs. 1 crore, Mr.Shadakshari said.

He said the bank had set a target of Rs. 300 crore towards disbursement as loan during 2006-07.

Mr. Shadakshari said the bank was yet to get Rs. 150 crore from the State Government, including Rs.100 crore towards interest component waived on crop loans.

He said the non-performing assets of the bank had come down from 58 per cent to 28 per cent by March 2006. He hoped to bring it down to 20 per cent by the end of the current financial year.

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Plea to correct anomalies in farm loan scheme

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