Small Farmers' performance disappointing: Minister

Hyderabad, Jun 27 (UNI) Union Minister of State for Finance Pawan Kumar Bansal today regretted the ''disappointing'' performance of Small and Marginal Farmers, despite the banks providing loans to them.

Participating in the 161st State Level Bankers Committee (SLBC) meeting here, Mr Bansal stressed the need to monitor the activities of the farmers, who took loans at the grassroot level. Achieving 100 per cent financial inclusion would ensure every citizen access to banks, he added.

Advising Banking Institutions to device innovative products, which would change the life style of the people, Mr Bansal urged them to introduce Micro Insurance schemes to benefit the poor.

Chief Minister Y S Rajasekhara Reddy earlier said the Government had targeted to provide Rs 7000 crore loans to Self Help Groups (SHGs) in 2007-08, as against Rs 3500 crore last year. Rs 1500 crore would be distributed to one lakh beneficiaries under State Housing scheme during this year, he added.

Dr Reddy said, as part of relief measures to farmers indebted to the Non Institutional lenders, the debt swapping scheme would be implemented to repay loans taken from money-lenders.

The Chief Minister urged the banks to provide loans to the poorest of the poor on Differentiated Rate of Interest (DRI).

UNI