Punjab govt increases limit of agri loans in the state

Chandigarh, Mar 12 (UNI) The Punjab government has decided to increase the clean loan limit of state Cooperative Banks for the agri sector from Rs 50,000 to one lakh rupees per acre, with the maxiumum limit being enhanced from four lakh rupees to six lakh rupees per farmer.

Disclosing this at a media conference here today, state Cooperation Minister Capt Kanwaljit Singh said although, from time to time, the limits of agri loans by the Cooperative Banks had been enhanced, but to give a real boost to agricultural production in the state, the Banks need to 'open up' the loaning sector even further.

These Banks had been advancing various types of loans including short-term crop credit, medium-term loans for farm machinery, housing and trade, etc.

Capt Singh said in order to avoid leakages and corruption at various levels, the government had decided that the Branch Managers would be held responsible if the loan disbursement was delayed beyond 15 days after sanction. The processing of loan applications, reimbursement of loans would be constantly reviewed and audited and sanction procedures simplified.

Systemic changes would be brought in the processing and disbursement of loans in order to eliminate the element of corruption, he added.

UNI