Bhubaneswar: To provide financial support to poor farmers, the state government has targeted to disburse `5,000 crore of crop loan to them during the Rabi season 2016-17, officials said Thursday.
The cooperation department has decided to disburse the loan to farmer members of primary agriculture cooperative societies (PACS).
The loan will be given at 4 per cent interest to borrowers requiring an amount up to `50,000 while those availing an amount from `50,001 to `3 lakh will have to pay an interest of 5 per cent, sources said. They added that for loans over `3 lakh, the concerned bank will decide the rate of
interest.
If borrower farmers repay the loan on or before the due dates, the government will provide an interest incentive of 3 per cent to them. It means the farmers have to pay only 1 per cent (up to `50,000) and 2 per cent (`50,001 to `3 lakh) interest to the bank if they manage to repay the amount before the due date.
Officials say there are 17 central cooperative banks (CCBs) functioning in the state. The state had targeted to distribute `6,000 crore of crop loans to farmers during the Kharif season, out of which the banks have disbursed `5119.63 crore to 16.13 lakh farmers.
Similarly, the government had targeted to distribute `4,500 crore of crop loans to farmers during last Rabi season and it met the target.
Last year, the state witnessed drought too. As the state has received bountiful rainfall this year, the government has enhanced the target by `500 crore, sources said.
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