BHUBANESWAR: The State Government has set a target to disburse Rs 7,500 crore crop loans to farmer members of the primary agriculture cooperative societies (PACS) during 2020 Kharif season that commenced from April 1. In Kharif 2019, the cooperatives have disbursed Rs 7330.56 crore to 17,91,898 farmers against a target of Rs 7,500 crore. PACS, the last mile outlet of short term cooperative credit structures, has been playing a pivotal role in disbursal of farm credit with a share of around 68 per cent of the total crop loan in the State.
“The loan would be disbursed at concessional rate of interest of 4 per cent for loans up to Rs 50,000 and at 5 per cent for loan amount between Rs 50,001 and Rs 3 lakh,” Cooperation Secretary VV Yadav wrote to District Collectors. However, loan above Rs 3 lakh will be provided at commercial rate which will be decided by banks concerned.
In a bid encourage farmers for timely repayment of loan, the Government will continue to provide interest incentives of 4 per cent for loan up to Rs 50,000 and 3 per cent for loan up to Rs 3 lakh. This means that borrowers having short term credit up to Rs 50,000 will not pay any interest, if they repay their loan on or before the due date. For prompt payment to farmers, the effective rate of interest for loan ranging from Rs 50,001 to Rs 3 lakh will be two per cent against the concessional rate of 5 per cent.
“Since interest subvention is to be provided to commercial and regional rural banks, you are requested to ensure that these banks take immediate initiative to disburse crop loan to intending farmers as per the scale of finance fixed for the districts,” the letter said. Adequate steps should be taken to cover maximum number of sharecroppers under crop financing through joint liability groups (JLGs). The PACS should be advised to dispense at least 10 per cent of the crop loan to JLGs,” the letter said.
Interest rates
Govt to continue interest incentives of 4 pc for loan up to Rs 50,000; 3 pc for loan up to Rs 3 lakh
No interest rate for borrowers having short term credit up to Rs 50,000 on repayment of loan by due date
DCCB, PACS/LAMPS asked to asked to link Aadhar with Kisan Credit Card and bank accounts
Banks asked to prepare action plan to cover left out farm families under cooperative credit networks