Shimoga DCC Bank to revise interest rates on crop loans

SHIMOGA, MARCH 24. The Shimoga District Central Cooperative Bank will revise interest rates on the crop loans, following a government order in view of the enhanced budgetary allocation of Rs. 450 crores for waiving interest on crop loans.

Addressing presspersons, the president of the bank, R.M. Manjunath Gowda, said that according to the norms, those who had availed themselves of the loan before March 2004 will get full waiver of interest if they repay their outstanding loan before June-end, while those who have availed the loan after April 2004 will get the benefit of reduced interest at 6 per cent on their loan if they repaid it before April 15 this year.

Reduced rate

Mr. Gowda said the reduced rate of interest is applicable to all types of crop loans obtained from the cooperative credit cooperative institutions. While the District Central Cooperative Banks advanced crop loan to Primary Agricultural Credit Societies at the rate of four per cent interest, the societies, in turn, advanced loan to borrowers at 6 per cent interest.

He said that the Government advanced the 5.5 per cent subsidy to the District Central Cooperative Banks under this scheme which is also applicable to the loan advanced by the primary agricultural credit societies out of their own resources.

Mr. Gowda said nearly 50,000 borrowers of the bank will be benefited. The bank is confident of achieving the target of the agricultural advances of Rs. 147 crores fixed in the district annual credit plan for this year by June-end, he said. Most of the borrowers of the commercial banks are expected to seek the crop loan through cooperative institutions in view of the reduced rate of interest, he said.

Mr. Gowda said that the bank is expected to earn a net profit of Rs.11 crores by March-end, which may go up if the Government repays the difference of Rs. 3 crores in the rate of interest on crop loans by that time. He said the bank has been recovering loans to the tune of Rs.1 crore every day.

Self-help groups

He said the bank has given importance to poverty alleviation programmes under the Micro Credit Scheme and added that 2,591 self-help groups have been formed with the help of primary agricultural credit societies, which have advanced loans to the tune of Rs.1.83 crores. Hosnagar taluk has been declared "Self-help groups taluk" and Shimoga district as "Full-fledged self help-groups district'' in the cooperative sector.

He said under the Business Development Programme, the bank had supplied counters and treasure chests to agricultural service cooperative banks to enable them to improve their transactions.

Mr. Gowda said that the golden jubilee of the bank will be celebrated soon. He said that the "Sahyadri Cooperative Training Centre" will be started at the second floor of the main administrative building to train the staff of various cooperative institutions.

The Managing Director of the Bank, B.A. Mahadeveppa was, present.

Recommended for you