Allahabad Bank to launch debt swap scheme for farmers in UP

Kolkata, May 3(UNI) Public sector Allahabad Bank has decided to launch a debt swap scheme for farmers in nine drought-prone districts of Uttar Pradesh, Chairman and Managing Director A C Mahajan announced here today.

" We are going to launch immediately the debt swap scheme for medium and small farmers in nine districts of Bundelkhand region to replace the earlier debts," he said after announcing the bank's financial results for 2007-08.

Under the scheme, named 'Krishi Kalyan Yojna', farmers would be given loans up to Rs 25,000 for education, medical, marriage, house building and other purposes.

The loans will be given with 12.5 per cent interest and a moratorium of 12 months.

" By taking this loan, the farmers will not be deprived from getting other loans which are now in force," Mr Mahajan said.

The nine districts, which have been selected are : Amirpur, Banda, Mohua, Jalan, Chitrakoot, Jhansi, Lalitpur, Mirzapur and Sombahadra.

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