
NAGAPATTINAM: The fisherfolk community say the Union Budget announcement of increasing the loan limit from '3 lakh to '5 lakh with interest subvention under the Kisan Credit Card Scheme would help them to meet their working capital requirements. They, however, demand to improve the loan application and processing procedures.
On Saturday, Union Minister for Finance Nirmala Sitharaman announced that the loan limit under the Modified Interest Subvention Scheme will be enhanced from Rs 3 lakh to '5 lakh for loans taken through KCC. She said the government is facilitating short-term loans for 7.7 crore farmers, fishers and dairy farmers under the scheme. "The increase in loan limit up to Rs 5 lakh could benefit the boat owners to improve their budget for minor repairs to their vessels and nets. They can tend to their boat and gear more than they could do under Rs 3 lakh. However, they are made to wait for longer periods to avail them," said S Mohandas, a boat owner from Akkaraipettai in the district.
The Kisan Credit Card Scheme was introduced in 1998. A senior bank official from Nagapattinam said, "Under the scheme, the Union government provides an interest subvention to beneficiaries so that their rate of interest for the loan is reduced." The Centre extended the scheme to fishermen and cattle farmers in 2018 to help them to meet their working capital requirements.
Since then, the fishers have been applying to manage the operational costs such as fuel, ice, wages and maintenance costs such as repairs. However, they said not many are successfully availing them in or before the desired time, especially the two-month annual fishing ban period.
K Arutchezhiyan, a boat owner from Pazhaiyar in Mayiladuthurai district, said, "The Union government should also enhance the ease in procedures in providing the KCC loans on time so that the fishers do not have to venture in boats in unserviced conditions and risk their lives in the sea while the boat owners wait for loans."