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Our Bureau

Thiruvananthapuram , Oct. 3

The National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 342.65 crore to Kerala State Cooperative Bank (KSCB), at 2.5 per cent interest rate, as refinance for crop loans.

According to Mr B.S. Shekhawat, Chief General Manager, Nabard, the amount has been sanctioned at one go in the light of the assurance given by the Cooperation Minister, Mr G. Sudhakaran, that he would look into the affairs of KSCB.

Lower interest

The sanction will help the cooperative banks in the State to disburse crop loans at lower interest rates than the seven per cent prescribed by the Union Government.

The State Government, on its part, has announced that the interest rates on crop loans will be 5.5 per cent for amounts up to Rs 1 lakh and six per cent for up to Rs 3 lakh.

Of the 14 district cooperative banks (DCBs) in Kerala, three, namely, Kottayam, Ernakulam and Palakkad, are at present not eligible for assistance from Nabard due to their inability to comply with certain statutory requirements.

Mr Shekhawat said that had these banks been eligible, all the 14 DCBs in the State would have got a share in a total allocation of Rs 650 crore from Nabard.

Also, KSCB would have got a higher refinance from Nabard if the former had been organisationally stronger.

Nabard has so far sanctioned a total short-term credit of Rs 666.59 crore to KSCB and regional rural banks for crop loans in the current year.

Apart from the Nabard's support of Rs 342.65 crore at 2.5 per cent interest, the primary agriculture credit societies (PACS) in the State are also looking forward to similar interest subvention from the State and Union governments.

More Stories on : Farm credit | Agricultural Institutions | Co-operatives | Kerala

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Nabard sanctions Rs 343 cr to KSCB

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