Krishnagiri: Farmers should save the income created by credit and pay loan instalments regularly to recycle credit, said the Assistant General Manager, NABARD, V. Thirumalai, at the inauguration of a Farmers' club at Tatrahalli panchayat near here on Tuesday.
The clubs are expected to act as bridge between farmers and banks.
Those interested in doing social service are chosen as chief volunteers and deputy volunteers.
There will be 10 to 20 farmers in the clubs. They should belong to the same villages or contiguous villages for the purpose of monitoring.
The clubs should meet once in a month and 100 per cent attendance is required.
Mr. Thirumalai said the meetings may finalise the credit needs of the members, formulation of village development plans, social issues of the villages, problems faced in carrying out agriculture and allied activities so that the same can be taken up with the higher agencies.
For the Base Level Orientation Programme, NABARD will reimburse the expenditure up to Rs. 5,000 and for maintenance for the first three years Rs. 3,000 will be given for conduct of meetings, maintenance of registers and spending the maintenance grant given during the previous year.
Experts from agriculture, horticulture, fisheries, sericulture and animal husbandry can be invited for the meeting. For the purpose, Rs. 1,250 will be reimbursed by NABARD.
The clubs can also form SHGs up to a maximum of 10. Incentives at the rate of Rs.500 per credit linked SHG will be extended by NABARD. Mr. Thirumalai asked the members to compete for the prizes issued by NABARD at the State and National level next year.
Manager, Indian Bank, Veeramani and president, Tatrahalli panchayat, Murugan were present.