Punjab Cooperative Agri banks to lower interest rate

Chandigarh, Apr 11 (UNI) The Punjab government has directed the Punjab Cooperative Agricultural Development Banks (PADBs) to lower the rate of interest on loans advanced to the farmers and provide hassle free and prompt services to the farming community in order to free them from the traditional money lenders.

These instructions were given by Cooperation Minister Capt Kanwaljit Singh while presiding over a high level review meeting of the functioning of the PADBs here today.

He directed the PADBs to reduce their profit margin and pass on the same benefit to the farmers.

He said the loans by PADBs would be advanced on 75 per cent of the land value instead of the existing 70 per cent fixed earlier by the district collectors. Loan procedure would be simplified to save the farmers from hardships, he added.

With a view to giving relief to the farmers, the state government has abolished the condition of owning 10 acres of land for getting tractor loans from the PADBs, he said. This step was taken on the recommendations of the state Farmers Commission, he added.

Capt Singh further said the managers of PADBs would in future issue acknowledgement receipt to the prospective borrower of the loan immediately and would ensure that the loan is disbursed within a fortnight. To bring absolute transparency in the loan payments, the minister directed that the loan amount would be paid directly to the farmer/loan applicant by PADBs instead of the present system of third party payment.

To further improve the functioning of PADBs, he said that the best performing PADB in the state would be given an award annually.

He also directed the banks to organise awareness camps in the farmers clubs constituted in various districts on regular basis.

He further stressed that a refresher training must be imparted to all bank employees in order to keep them abreast with the latest financial management systems.

UNI