The Dharwad-headquartered regional rural lender, Karnataka Vikas Grameen Bank (KVGB), has launched an overdraft (OD) facility for farmers.
Talking at the launch of the ‘Kirishi OD’ scheme made for farmers, P Gopi Krishna, Chairman of the lender, reported that the farmers are supplied with an OD facility based on the value of the land. The limit is capped to a utmost of ₹1.five lakh per acre to irrigated lands and ₹1 lakh per acre to dry land.
The facility can be utilised for working funds specifications these types of as servicing of machinery and equipment, restore and alternative of machinery, agricultural allied functions and even for the compensation of personal financial loans availed for personalized use.
He reported the uncontrolled temperature, escalating organic disasters, and the recent Covid condition have made farmers vulnerable. “To ease the condition, KVGB has made a particular OD facility for the farmers to assist them to cope with the condition,” he included.
Neeraja Kumara Verma, Main Typical Manager of NABARD, who launched the scheme in Dharwad, reported that credit circulation is vital for the growth of the agriculture sector and regional rural banking institutions (RRBs) are performing very well in this regard. He reported the ‘Krishi OD’ facility is a unique scheme and will benefit the farming neighborhood.
Verma reported that NABARD is keenly looking at the progress and involvement of RRBs and extending well timed steering and guidance. “RRBs are performing very well less than priority sector lending, formation and linkage of SHGs and JLGs and even in taking care of microfinance issues.”
A press release by KVGB reported that he lauded the efforts of KVGB in issues associated to money inclusion.