‘DCC banks may write off loans taken by COVID-19 victims’

Minister for Cooperation S.T. Somashekar at the loan disbursement programme organised by MDCC Bank in Mysuru on Tuesday.   | Photo Credit: M.A. Sriram

Minister for Cooperation S.T. Somashekar on Tuesday said Chief Minister B.S. Yediyurappa was considering waiving loans taken in the District Credit Cooperative (DCC) banks by those who have succumbed to COVID-19. A formal announcement on this will be made soon, he added.

Speaking at a programme organised to distribute crop loans to farmers for the current season from the Mysuru District Credit Cooperative (MDCC) Bank here, Mr Somashekar, who is also the Minister in charge of Mysuru district, said he has asked the Managing Directors of Apex Bank and all DCC Banks for details about those who had taken loans and have died owing to COVID-19.

The waiver would be announced soon after collecting all the details.

Mr. Somashekar said the Chief Minister wanted crop loans to the tune of ₹20,810 crore given to nearly 30 lakh farmers this year. The banks had been told to achieve 100 percent target in disbursing loans like last year.

“Last year, a 114 percent target was achieved in disbursing loans. This year too, the Chief Minister has asked us to surpass the target.The process of disbursing loans from cooperative banks for the current season was formally inaugurated at the Banquet Hall in Vidhana Soudha in Bengaluru recently. The programme in Mysuru is the second stage of crop loan disbursement after Bengaluru and Bengaluru rural. I am visiting Kodagu on Wednesday for crop loan disbursement in the district. I will be visiting all 21 DCC banks in the coming days for distributing loans to farmers,” the Minister informed.

Mr. Somashekar said the target last year was to disburse crop loans of ₹15,300 crore to 24.50 lakh farmers. However, 21 DCC banks disbursed ₹17,108 crore, achieving 114 percent target.

Despite the pandemic situation and lockdown, those who had taken crop loans were promptly repaying the credit and 95 per cent of the loans borrowed from the banks had been repaid, he said, while thanking farmers for the repayment despite difficulties.

On the alleged irregularities in Shivamogga and Kalaburagi DCC banks, he said steps had been taken in connection with the allegations and the crop loan disbursement will be done from those banks soon. All 21 DCC banks are in profit and therefore there were no hurdles in disbursing fresh loans to farmers, he added.

MDCC Bank Chairman Harish Gowda, Mysuru Milk Union President Prasanna and others were present.

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Printable version | Sep 23, 2021 1:32:01 AM | https://www.thehindu.com/news/national/karnataka/dcc-banks-may-write-off-loans-taken-by-covid-19-victims/article35172106.ece

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