From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Oct 27: Agricultural loans from the cooperative institutions in state at a ridiculously low interest rate of 1 per cent?
But there is a catch: Farmers in the state will be eligible to avail crop loans at 1 per cent interest rate subject to the condition of prompt repayment of the agricultural loans availed by them.
The state created history by being the first state in the country to offer crop loans to the farmers at the lowest interest rate of 3 per cent in 2006-07 when the present chief minister B S Yeddyurappa was the deputy chief minister-cum-finance minister under the H D Kumaraswamy-led JD(S)-BJP coalition regime.
The 3 per cent subsidised interest rate regime for farm loans was, however, restricted to cooperative institutions in 2006-07.
When the BJP came to power on its own in the May 2008 assembly polls, Yeddyurappa as chief minister and finance minister extended the low interest crop loan scheme even to all farm loans from the nationalised and regional rural banks as well as the cooperative institutions.
But with the Congress-led UPA regime deciding the raise the interest subvention for timely repayment of crop loans from 1 per cent to 2 per cent from the current financial year, the Yeddyurappa regime has decided to pass the benefit to the farmers by offering crop loans at the lowest 1 per cent interest rate to farmers who have been prompt and regular in their repayments.
Cooperation minister Laxman S Savadi announced that the effective rate of interest for farmers prompt and regular in their repayments will now be 1 per cent per annum.
''All farmers who borrowed crop loans in 2010-11 are eligible to get this benefit,’’ he said.
The minister said recovery rate of crop loans touched 80 per cent in the state.
Cooperatives have already disbursed Rs 2,434 crore crop loans to farmers in this fiscal so far. The government has set a target to disburse crop loans to the tune of Rs 4,300 crore in 2010-11.
The Karnataka Level Bankers’ Committee revealed that the state government has already released Rs 40 crore as advance subsidy under the scheme for reimbursement of interest subsidy claims to public sector banks and regional rural banks.
Four New Cold Storages
Savadi also said the government has decided to set up four cold storages in Belgaum, Dharwad, Raichur and Bijapur at a cost of Rs 10 crore. The milk unions of respective districts would take up works of cold storages.
As an incentive, a decision was also taken to release Rs 70,000 each to newly formed cooperative milk societies in 114 backward taluks of state.
As many as 235 societies had been formed during the last one year. A sum of Rs 10 crore had been set aside for the purpose.
He said 'e-stamping’ facility would be made available in 1000 district credit cooperatives and urban cooperative banks by March 31, 2011.
The e-stamping facility was presently available only in 235 cooperatives.
Insurance Benefits
The state state Insurance Co-operative Society Limited (KSICSL) and private insurer, Bharti AXA General Insurance, entered into a tie up for providing group personal accident insurance policy and vehicle loan insurance policy to farmeRs The state state Co-operative Federation Limited initiated the KSICSL.
A farmer who borrowed the crop loan from cooperatives and paid annual premium of Rs 40 is eligible to get the personal accident insurance policy.
In case the farmer met an accidental death, the insurance firm would return the loan amount, and grant Rs 5,000 each for two children for education, Rs 5,000 each for two girls’ marriage and Rs 30,000 towards foodgrains and purchase of domestic animals for the farmer’s family.
In the case of borrowing of Rs 5 lac from a cooperative society/bank for purchase of a tractor, the farmer has to a pay annual premium of Rs 1,900.
But the minister explained that in the event of farmer’s death, his family would get insurance amount of Rs 11.20 lac. The scheme would cover 13 lac farmers by March 31, 2011, he added.