Karnataka State Cooperative Agriculture & Rural Development Bank President K. Shadakshari thanked the state government led by Siddaramaiah for announcing an interest waiver scheme for long term loans of farmers associated with Karnataka SCARDB.
Karnataka is the only state in the country where the state government has come forward to help the farmers and introduce interest waiver schemes for the long term credit cooperative structure. “It will help farmers in the State especially those in 223 taluks which are severely affected by drought during the last few years”, said Shadakshari.
The scheme will be implemented till 29th February 2024, in which borrowers repay the principal portion. Under this scheme, 56,879 farmers having outstanding dues of Rs 1,025 crores as on 31.12.2023 will get a total interest waiver of Rs.440.21 crores on payment of principal overdues of Rs.585.16 crore.
The interest waiver Scheme, on an average, involves 43% of waiver of outstanding dues of farmers.
Shadakshari also thanked the Government for continuing the interest subvention scheme for prompt repayment, which will facilitate farmers to avail long term loans from the SCARDB at an affordable interest rate of 3% as the entire difference in the cost of funds is reimbursed to the Bank.
This scheme helps the bank to post more than 90% recovery in new loans in most of the Districts, whereas it continues to struggle with the staggering overdues in old loans.
“With the successful implementation of the new OTS Scheme with full interest waiver of old overdue loans, the bank will get rid of the issue of overdues and NPAs once and for all”, Shadakshari underlined.
