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Nabard offers special refinance rate for crop loans in Gujarat

Our Bureau Ahmedabad | Updated on August 14, 2012 Published on August 14, 2012

The National Bank for Agriculture and Rural Development (Nabard) will consider a special line of refinance at 7.5 per cent interest rate to local banks to finance farmers for cultivation and purchase of fodder in scarcity-hit areas of Gujarat, Prakash Bakshi, Chairman, said on Tuesday.

The scheme would be finalised in consultation with the State Government, according to a press release.

After visiting some scarcity-affected villages in Tankara block of Rajkot district, he said the crop position in the region is not satisfactory due to scanty rainfall. Nabard would take up the issue of re-scheduling of loans of farmers. In the case of additional credit demand by farmers due to re-sowing, Nabard will consider sanctioning additional refinance limits to cooperative banks and regional rural banks (RRBs).

He informed that for rescheduling of crop loans, due to water scarcity, Nabard refinance will be available at the rate of 3 per cent less than the bank lending rate. The banks may consider providing additional finance to farmers for cultivation of alternative crops, as suggested in the contingency plan of the State Government.

Nabard would be willing to join hands with the State Government for building model schemes for efficient water management in the Narmada Canal Area, Bakshi added.

Published on August 14, 2012
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