Agri loans @1% sans collateral

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Bhubaneswar: In a significant move, the state government has decided to offer agricultural loans to landless farmers at 1 per cent interest and without any collateral from cooperative banks. The government’s decision aims at empowering the landless farmers in the state, Co-operation Minister Surya Narayan Patra told the media Friday.
Speaking on the sidelines of state government’s media blitzkrieg after Chief Minister Naveen Patnaik’s review of his department, the minister said that cheap loans will be provided to landless farmers/sharecroppers under a Joint Liability Group (JLG) scheme from the next Kharif season.
With around 2,708 primary agriculture cooperative societies (PACS) already functioning in Odisha, the move will help to empower sharecroppers by making institutional finance available to them, Patro said. “Henceforth, landless farmers will be able to avail loans for agriculture as well as allied activities.”
According to the minister, under the JLG scheme a minimum of five landless farmers can form a group and approach cooperative banks for loans to the tune of `50,000 at 1 per cent interest. “Each PAC will ensure the formation of at least 10 such JLGs and help them to avail loans,” he added.
The Co-operation Department’s move comes in the wake of the Chief Minister directing the department officials to streamline the loan disbursement process to farmers through JLGs.
“The new move will help more than 1.35 lakh landless farmers to avail institutional loans,” said Patro, adding, “The state government will distribute around `200 crore crop loan to farmers though the JLGs during the ensuing Kharif season.”
Earlier in the day, during a meeting of the district-level officials of the Co-operation Department, the minister asked them to undertake awareness drives among landless farmers to form JLGs. He emphasised the need to cover the landless farmers who are currently heavily dependent on private money lenders to fund their agriculture activities.
Speaking about Cooperation Department’s activities during the past four years, Patro said the state government has disbursed subsidy amount worth around `1,466.79crore to farmers during this period.
During this Kharif season, the state government plans to disburse loans to the tune of `7,200 crore, including `1,000 crore term loans, in allied agriculture sectors, while a sum of `400 crore has been earmarked for providing insurance cover to farmers.