BENGALURU: The vast postal department network across the state will shortly be utilised by India Post to help out farmers in financial need, by partnering with HDFC Bank. The Karnataka Postal Circle will disburse loans to farmers and collect EMIs on their behalf across its post offices.
This is the first such venture by the state’s postal department. The move is expected to benefit farmers, the bank as well as the postal department. Speaking to TNIE, Chief Postmaster General (CPMG) Rajendra S Kumar, said, “India Post’s network is expected to be leveraged to reach useful financial products and services to the under-banked and the un-banked.
It will act as a lead generator for various agriculture, allied and related loans as per the basic eligibility criteria. HDFC Bank will assess the positive leads as per the bank’s policies and disburse loans to the borrowers.” The post office will also serve as a loan repayment centre for farmers, he added.
The applications for agriculture loans on behalf of HDFC Bank will be accepted by post offices thereby facilitating lead generation. “Collection of EMI will be done through e-payment service of post offices,” the CPMG said. Another official said that HDFC Bank has a wide range of product offerings under its Rural Product suite like Secured and Unsecured crop loans to small and marginal farmers, agri infrastructure scheme loans for nursery, warehousing, agri processing, and cold storage. In addition to that, dairy loans, horticulture loans, poultry and pisciculture loans and Stand Up India Loans are available at a competitive market rate, he said.
“Many farmers in remote villages are not even aware that such loans are available and the local post office could play a crucial role in sharing information about them,” the official added.