Nabard to refinance co-op banks

Dr. Harsh Kumar Bhanwala Chairman NABARD said his organization would supply abundant long term credit through rural credit fund to make it possible for cooperative banks to help farmers.

This was the Co-operative banks would be able to offer easy loans and investment money for agricultural development. It would be a 820 million dollar fund this fiscal, Mr. Bhanwala said.

Nabard chief says the fund as announced by the union finance ministry would go a long way towards raising farm production and productivity. The share of cooperative banks in investment credit in farming has been extremely low in the last fiscal.

Nabard would remedy this lack providing cooperative banks with refinance facility with the repayment period of 5 years at 7.85 percent annually, so they could give investment credit without difficulty, he intoned.