The Hindu Business Line : Malaprabha Grameena Bank to lend Rs 378 cr to priority sector

According to the Chairman , Mr B.S. Surendra, the bank is catering to the needs of farmers in Dharwad, Haveri, Gadag and Belgaum districts. It is planning to advance Rs 600 crore, including Rs 378 crore to the priority sector, during the current financial year.

A press release said here on Wednesday that the bank has signed memoranda of understanding with tractor companies such as Mahindra Gujarat Ltd, Bajaj Tempo Ltd, Punjab Tractors Ltd and TAFE.

Under the arrangement, the bank will finance the purchase of tractors. To get this facility, farmers should have six acres of irrigated land and 15 acres of dry land, and should contribute 15 per cent of the vehicle cost as margin money.

Mr Surendra said that the tractor companies have agreed to provide a minimum of four free services instead of three free services and comprehensive insurance coverage. With this, farmers could save around Rs 6,000.

He said that the farmers, who have converted their earlier crop loans into medium-term loans, could get fresh loans from their service area branch of the bank.

Malaprabha Grameena Bank has 243 branches and serves farmers in 1,400 villages.

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