NABARD to double share of refinance for crop loans

Thiruvananthapuram, Jun 26 (UNI) The National Bank for Agriculture and Rural Development (NABARD) has decided to double its share of refinance for crop loans for Kerala from an estimated Rs 300 crore to Rs 650 crore at 2.5 per cent interest.

NABARD Chief General Manager B S Shekhawat, however, said the decision was taken on the condition the cooperatives give advances to farmers at not more than seven per cent interest.

The decision was taken after meetings between State Cooperation Minister G Sudhakaran and NABARD officials, a release said here today.

Earlier Chief Minister V S Achuthananthan, along with Finance, Cooperative, Agriculture and Revenue Ministers held a meeting with all the District Cooperative Bank (DCB) Presidents to reduce the interest rate on crop loans.

NABARD had also insisted on the government to refund the treasury deposits of Ernakulam and Palakkad DCBs, amounting to Rs 67 crore and Rs 88 crore, respectively, to make them eligible for NABARD refinance and free the amounts for lending to farmers.

It also said the government would have to streamline the functioning of the Kerala State Cooperative Bank and enhance its credit absorption capacity for larger flow of refinance.

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