Terms for subsidised loan harsh: Patil

Bangalore, May 24 (UNI) Leader of the Opposition in the Karnataka Legislative Council H K Patil today urged the JD(S)-BJP coalition government to revise the order on providing farm loans in the cooperative sector at a subsidised rate of four per cent as the conditions termed were harsh and would not benefit genuine farmers.

Talking to newspersons here, he said the government should not clamp any ceiling on the proposed interest rate and should benefit those seeking over Rs three lakh loan. Similarly the condition that the defaulting loanees would have to pay interest of between 11 to 13 per cent with retrospective effect was also harsh, he added.

Stating that the government should issue a fresh order withdrawing all the conditions, he said that given the situation, the scheme would not benefit a majority of farmers with six District Central Cooeprative Banks not eligible for refinance by NABARD due to their performance. Thus 30 per cent of the farmers would not be entitled for loan, he pointed out, adding that the government should ensure that every farmer got loan at four per cent.

Referring to former Prime Minister and JD (S) President H D Deve Gowda's criticism that it would not be possible to extend loan at four per cent, Mr Patil said it should be possible as in the case of vehicle loans provided at subsidised rates. ''If those buying mercedes are provided loans at 6.5 per cent, why cannot a farmer get loan at four per cent for his cart,'' he asked.

UNI VK RG HVB1850