Karnataka Coop Banks Scheme
On medium- and long-term past-due loans from District Cooperative Central and Primary Cooperative Agriculture and Rural Development banks, the Karnataka government on 16th of February consented to waive interest. Over 57,000 farmers will profit from this. Through this programme, the DCC and PICARD banks will be able to recoup debts totalling Rs. 496 crores. Read the article below to learn more about the Karnataka Cooperative Banks Loan Interest Waiver Scheme. To enable the efficient implementation of policies about agriculture and related activities, the Chief Minister will chair the establishment of the Agriculture Development Authority.
The government has decided to eliminate interest on medium- and long-term past-due loans from banks that specialise in Primary Cooperative Agriculture and Rural Development (PICARD) and DCC. The scheme would result in a significant improvement in these banks’ financial condition. The scheme is launched to ensure that agricultural policies are implemented effectively so for this purpose the Agriculture Development Authority will be established.
The interest on medium- and long-term past-due loans from DCC and Primary Cooperative Agriculture and Rural Development (PICARD) banks would be waived, according to our government’s decision. More than 57,000 farmers stand to gain from this. The DCC/PICARD banks will be able to recover loans totalling Rs. 496 crores as a result of this initiative.
Overview
|
Name of the scheme |
Karnataka Coop Banks Loan Interest Waiver Scheme |
|
Launched by |
Karnataka government |
|
Launched on |
16th of February 2024 |
|
Objective |
to waive interest |
|
Benefit |
to waive interest on overdue loans of district cooperative banks |
|
Beneficiaries |
Over 57000 farmers |
|
State |
Karnataka |
|
Official Website |
Eligibility Criteria
Following are the Eligibility criteria for the Loan Interest Waiver Yojana
- The applicant must be a resident of Karnataka.
- People who have overdue loans from district cooperative banks are eligible for this scheme.
Features
Following are the features of the Loan Interest Waiver Scheme
- It was decided to boost the upper limit for medium- and long-term loans, which are given at a subsidised interest rate of 3 per cent, from Rs 10 lakh to Rs 15 lakh in 2023–24.
- Similarly, the lending ceiling for interest-free short-term loans was extended from Rs 3 lakh to Rs 5 lakh.
- It would provide almost 57,000 farmers an advantage.
- The Agriculture Development Authority will be established to guarantee the efficient implementation of agricultural policy.
- The cooperative sector is targeting loans of Rs 27,000 crore this year, which will help over 36 lakh farmers in the state.
Benefits
Following are the benefits of the Loan Interest Waiver Scheme
- It would provide almost 57,000 farmers with a benefit.
- Under the plan, the government will compensate the banks with financial support of Rs 450 crore.
- This decision will bring about a considerable improvement in the financial condition of these banks.
- To enable the efficient implementation of policies about agriculture and related activities, the Chief Minister will chair the establishment of the Agriculture Development Authority.
Required documents
Following are the documents required for the Loan Interest Waiver Scheme
- Aadhar Card
- Phone number
- Bank account number
- Other details
How to Apply
Follow the steps below to apply for the scheme.
- Go to the official website of the scheme.
- The home page of the website will appear on the screen.
- Select the Coop Banks Loan Interest Waiver Scheme option.
- A new page with an application form will appear.
- Enter the required details
- Click on the submit option
Important links
Announcement
- The Karnataka government has decided to waive interest on medium and long-term overdue loans of District Cooperative Central and Primary Cooperative Agriculture and Rural Development banks, Chief Minister Siddaramaiah said on Friday, claiming that it would benefit more than 57,000 farmers.
- Presenting the 2024-25 budget in the Assembly, he said an Agriculture Development Authority will be created under the chairmanship of the Chief Minister to facilitate the effective implementation of policies related to agriculture and allied activities.
- “Our government has decided to waive off interest on medium and long-term overdue loans of DCC and Primary Cooperative Agriculture and Rural Development (PICARD) banks. This will benefit more than 57,000 farmers. As a result of this scheme, the DCC/ PICARD banks will be able to recover loans to the tune of Rs.496 crore,” Siddaramaiah said