Coimbatore District expects higher credit off-take next year (2014-2015) by micro, small and medium-scale enterprises (MSMEs) and the agricultural sector.
District Collector Archana Patnaik released here on Tuesday the potential-linked credit plan for Coimbatore District for 2014-2015.
The plan projects Rs. 10,031.30 crore credit outlay for 2014-2015, which is 20 per cent higher than current year’s projection.
The plan was prepared by National Bank for Agricultural and Rural Development (NABARD).
Its district development manager Inigo Arutchelvan told The Hindu that the annual credit plan (Rs. 8433 crore) for the district was almost the same as the project credit plan (Rs. 8311.96 crore). During the first six months of the financial year, the district has achieved the credit targets.
The potential outlay for next year is higher for all segments – crop loans, agricultural term loans, MSMEs loans and credit for other priority sectors. The term loan will focus on plantations, horticulture, poultry, market yard, warehouse and storage facilities.
Farmers now avail of pledge loans against warehouse receipts (if they had stored the produce in the facilities of Warehousing Corporation).
The Union Government has said that small and marginal farmers can get loans at seven per cent interest against warehouse receipts even if they use any registered warehouse that meets the parameters specified by the Government.
He urged the farmers to make use of the scheme (negotiable warehouse receipt system).
The Collector urged the banks to lend more to the agricultural sector. Coimbatore District Lead Bank manager Krishnamurthy said the banks should form committees of farmers and provide loans according to their needs.