Rural banks to disburse Rs 22,920 cr loan to farmers in current fiscal: Bihar Dy CM Sushil Kumar Modi

Bihar’s Deputy Chief Minister Sushil Kumar Modi today said that rural banks have to disburse a loan of Rs 22,920 crore among the farmers of the state in the current financial year.

The loan amount has to be distributed in fiscal 2017-18 through various rural banks- such as Bihar Grameen Bank, Madhya Bihar Grameen Bank and Uttar Bihar Grameen Bank-in the current financial year, Modi said in a statement.

Modi, who also holds portfolios of Finance and Commercial Taxes, said this while addressing a meeting of Chairmen of rural banks, their senior officials and senior state government officials here in the state capital.

The three rural banks operate with 2110 branches and 5555 business correspondents in the state, he added.

While making a fervent appeal to farmers to make timely repayment of loans, Modi said that 90 per cent of farmers fail to get the benefit of four per cent interest subsidy as they don’t make timely repayment of loans and end up paying 11 to 12 per cent of interest instead.

The Centre and the state government provide three and one per cent of interest subsidy respectively to the farmers on their loans, he said.

Of the total loans given by rural banks, 65 per cent loans are given to Kisan Credit Card (KCC) holders, the Finance Minister said and added that banks provide RuPay cards to KCC farmers but only 10 to 15 per cent of KCC farmers make use of them (cards).

Banks have been asked to give loans of Rs 50,000 to Rs 5 lakh under MUDRA loan scheme, Sushil Modi said adding that it has been witnessed that banks normally advance Rs 50,000 under the scheme which is a meagre amount to start and sustain any business.

The Dy CM has also asked the banks to give Rs 12,000 to each of Self Help Group (SHG) in every district for construction of toilet while Rs 1.5 lakh to Rs 2 lakh should be provided to the contractual teachers as personal loan on the basis of their salary.