Southern States - Tamil Nadu

Interest cut for coop. crop loans

By Our Special Correspondent

CHENNAI April 18 . The interest rate on short-term crop loans above Rs 25,000 taken by farmers from cooperative banks has been reduced by the State Government.

While the rate for loans from Rs. 25,000 to 50,000 has been reduced from 15 to 13 per cent, for loans above Rs. 50,000 it would be 14 per cent as against the current 16 per cent, the Food and Cooperation Minister, P. Dhanabal, said today. However, there was no change in the rate of 12 per cent for loans upto Rs. 25,000.

Placing the demands pertaining to his Ministry in the Assembly, the Minister also announced a cut in the interest rate for women beneficiaries. While the reduction in priority sector loans including farm, education and small industries would be one per cent, for the revamped scheme of savings-linked micro credit, the rate would be 12 per cent as against the current 15 per cent. The interest rate for women entrepreneur loans would be reduced from 15 to 14 per cent.

Poor pregnant women would be given a loan of Rs. 2,000 at 12 per cent. The amount would be given either as one-time payment at the time of delivery or in two instalments from the eighth month of pregnancy. The loan could be repaid in easy monthly instalments from the third month of delivery. Women self-groups would be involved in identifying the beneficiaries.

Referring to the members' complaint that different cooperative banks charged different interest rates for jewel loans, the Minister said orders were issued fixing a uniform rate of 15 per cent.

Ten more branches of district cooperative banks would be opened in Chennai, Kancheepuram, Madurai and Tiruchi. To keep pace with nationalised and new generation private banks, cooperative banks in the city would open five ATM centres. Soaps manufactured by khadi industries would be sold through fair price shops. Similarly Aavin cards would sold through wholesale cooperative stores and supermarkets. To start with, the scheme would be introduced in Chennai.

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