THIRUVANANTHAPURAM: Bringing major relief to the state’s farming sector, Kerala State Cooperative Bank Ltd has decided to waive the interest on short-term loans availed by farmers during April-September last year.
According to a release from the managing director of Kerala State Cooperative Bank Ltd, the decision was prompted by Prime Minister Narendra Modi’s New Year eve announcement regarding interest waiver to farmers during November and December 2016.
Consequently, loans of upto three lakh sanctioned at seven per cent interest during April 1-September 30 last year will be taken into consideration.
Besides, the waived interest amount will be credited to the extent of four per cent in the said loan accounts of the farmers concerned. Separately,farmers will also get three per cent interest incentive on prompt repayment of short-term loans.
The decision was taken after National Bank for Agriculture and Rural Development (NABARD) had advised all the district cooperative banks and the state cooperative banks to complete the process of waiver of interest and credit the interest amount to the farmers’ short-term loan accounts by Wednesday. Hence, farmers may approach the primary agricultural cooperative societies concerned to avail the benefit of interest waiver announced by the Centre, the communique said