NABARD releases Rs 54.29 cr to Kerala

Thiruvananthapuram, Feb 21 (UNI) The National Bank for Agriculture and Rural Development (NABARD) has sanctioned a sum of Rs 54.29 crore to the Kerala State Cooperative Bank (KSCB) at an interst rate of 2.5 per cent.

A NABARD release said the amount was released on the condition that farmers would be provided crop loans up to Rs three lakh, at an interest rate not exceeding seven per cent.

With this, NABARD has total outstanding loans against KSCB at Rs 498.27 crore. The present loan was sanctioned as refinance against the initial credit limit of Rs 342.65 crore short term (Seasonal Agricultural Operations) sanctioned by it to the Bank.

All crop loans issued after April one, 2006 are covered under this. NABARD covers 40 per cent of the total crop loans issued by district Cooperative Bank, a share much largeer than the 25 per cent covered by State Cooperative Bank.

UNI