Rajasthan plans Rs. 3,600 crore crop loans

Special Correspondent

Rate of interest on loans up to Rs.3 lakh reduced from 11 to 7 per cent

JAIPUR: Rajasthan Cooperative Minister Parsadilal Meena on Wednesday said the State Government had set the target for disbursal of crop loans worth Rs.3,600 crore to farmers during the next financial year. He said all eligible applicants in the agriculture sector would get loans.

Making the announcement during Question Hour in the State Assembly, Mr. Meena said over Rs.3,000 crore had been disbursed as loans to about 19.41 lakh farmers during 2009-10, while all the 29 lakh farmers holding the Kisan Credit Cards would get loans after the State Government receives an additional Rs.2,500 crore under the head.

Mr. Meena’s charge that cooperative banks in the State suffered a loss of Rs.100 crore during the previous Bharatiya Janata Party regime led to some noise in the House. The Minister said the previous government did not release its share of money to the cooperative banks to compensate for the losses during the release of short-term crop loans.

Replying to a question by BJP MLA Rao Rajendra Singh, Mr. Meena said the State Government had reduced the rate of interest from 11 per cent to 7 per cent on the loans up to Rs.3 lakh under the Krishak Mitra Yojana. He said the NABARD had also agreed to enhance its financing from 40 per cent to 45 per cent of crop loans on the State Government’s request.

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