Interest-free loans for self-help groups,farmershttps://indianexpress.com/article/cities/pune/interestfree-loans-for-selfhelp-groups-farmers/

Interest-free loans for self-help groups,farmers

To promote the concept of self-help groups,District Guardian Minister Ajit Pawar on Monday announced loans at zero per cent interest rate for SHGs who would want to avail loans up to Rs 2 lakh.

To promote the concept of self-help groups (SHG),District Guardian Minister Ajit Pawar on Monday announced loans at zero per cent interest rate for SHGs who would want to avail loans up to Rs 2 lakh. He also announced sops for nearly 50,000 farmers who avail crop loans up to Rs 25,000.

Addressing the annual general body meeting of the Pune District Central Co-operative Bank (PDCCB),Pawar said Pune district will be among the first to waive the interest. Though the scheme comes with a rider. They have to return the amount to the bank within the stipulated time.

PDCCB chairman Baban Bhegade said the SHGs work on a very small capital and hence any interest burden would make things difficult for them. “This would encourage initial investment and would also see more group formation,” he said.

On the farm loan waiver,he said the announcement of debt waiver and debt relief scheme by the Union Government in February 2008 has been only partially implemented. “The disbursement is not yet complete and we are following it up with the Central and state governments,” he said. The bank is still waiting for nearly Rs 279.95 crore to be given by the Union and state governments under the debt waiver and relief schemes,he added.

The PDCCB and its allied co-operative banks and credit societies have cleared the debt accounts of farmers whose applications have been approved by the Union and state governments,said Bhegade.

The approved amount under the Union government’s debt waiver scheme was Rs 404.15 crore of which Rs 334.72 crore has been received by the bank. “While of the Rs 120.78 crore under the debt relief scheme,the bank has not received any amount,however we are following it up,” he said.

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Under the debt waiver scheme of the state,the PDCCB has received Rs 52.82 crore,which is 100 per cent of the approved amount while in the debt relief scheme,of the approved Rs 110.91 crore,the bank has received only Rs 20.17 crore till date.