Banks to lend more to farmer groups

Banks are expected to lend to about 2,000 groups of small and marginal farmers in the district during the next financial year.

District Collector Archana Patnaik released here on Tuesday the Potential Linked Credit Plan, prepared by National Bank for Agriculture and Rural Development (NABARD), for the district for 2015-2016. According to Inigo Arul Selvan, District Development Manager of NABARD, bank and non-governmental organisations can form Joint Liability Groups (JLG). NABARD has come out with incentives to both, the banks and the NGOs, which form the JLGs. Banks will lend to these groups for farming and non-farming activities. However, all the members of a group should have an economic activity.

The credit plan for the district for the current year (2014-2015) targets Rs. 10,226 crore lending. “The district is expected to achieve the target and there is potential to increase credit to Rs. 12,351 crore, almost 12 per cent more than current year credit,” he said.

According to the potential linked credit plan, 41 per cent of the plan outlay is earmarked for crop and term loans in the agriculture sector and 42 per cent (Rs. 5,124 crore) for the MSME sector. Another 17 per cent will be for priority sector. The plan also projects Rs. 1,643 crore of the total outlay for long-term lending to the agriculture sector. NABARD is supporting setting up of food processing units, warehouses, and food parks. K. Krishnamoorthy, the lead district manager, urged the banks to increase lending to MSME sector, taking advantage of the incentive schemes of the Government.

Source: http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/banks-to-lend-more-to-farmer-groups/article6637889.ece