The Dharwad-headquartered regional rural bank, Karnataka Vikas Grameen Financial institution (KVGB), has introduced an overdraft (OD) facility for farmers.
Speaking at the launch of the ‘Kirishi OD’ scheme created for farmers, P Gopi Krishna, Chairman of the bank, mentioned that the farmers are provided with an OD facility based mostly on the worth of the land. The restrict is capped to a utmost of ₹1.5 lakh per acre to irrigated lands and ₹1 lakh per acre to dry land.
The facility can be utilised for functioning cash demands this sort of as upkeep of machinery and gear, mend and alternative of machinery, agricultural allied actions and even for the repayment of private financial loans availed for private use.
He mentioned the uncontrolled weather conditions, escalating normal disasters, and the present Covid condition have made farmers susceptible. “To simplicity the condition, KVGB has created a special OD facility for the farmers to support them to cope with the condition,” he additional.
Neeraja Kumara Verma, Chief General Manager of NABARD, who introduced the scheme in Dharwad, mentioned that credit rating circulation is vital for the expansion of the agriculture sector and regional rural banking institutions (RRBs) are carrying out very well in this regard. He mentioned the ‘Krishi OD’ facility is a unique scheme and will benefit the farming local community.
Verma mentioned that NABARD is keenly observing the development and involvement of RRBs and extending well timed steerage and guidance. “RRBs are carrying out very well below precedence sector lending, formation and linkage of SHGs and JLGs and even in controlling microfinance issues.”
A push launch by KVGB mentioned that he lauded the attempts of KVGB in issues similar to economical inclusion.