The Hindu Business Line : Crop loans rescheduled in TN

THE National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs 500 crore to 15 district central cooperative banks (DCCB) to help them assist the Tamil Nadu State co-operative banks extend crop loans, according to an official press release.

In addition, NABARD has also extended refinance of Rs 122 crore to six other DCCBs at Virudhunagar, Ramanathapuram, Thanjavur, Kumbakonam, Sivaganga and the Nilgiris, which had not been covered earlier.

NABARD has earmarked Rs 900 crore for liquidity support to facilitate the banks reschedule the loans.

Due to continued drought farmers have not been able to return the loans owed to the cooperative banks and have become ineligible to borrow further. Rescheduling their loans will help them to borrow fresh loans during the current season.

In a separate press release, the Tamil Nadu Government announced that it has rescheduled as term loans over Rs 2,598 crore of short-term crop loans owed to the agriculture co-operative banks by farmers.

The loans have been rescheduled as term loans repayable over five years and include a two-year moratorium.

The decision follows two years of drought, which affected farming operations. Farmers were unable to pay their dues resulting in cooperative credit institutions not being able to lend to farmers.

To strengthen the banks, the State Government has extended over Rs 217.32-crore assistance. This will help them meet their crop loan target of Rs 1,037 crore in 2004-05, the release said.

More Stories on : Farm credit | Agricultural Institutions | Tamil Nadu

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