Journal of Pharmacognosy and Phytochemistry
Vol. 8, Issue 5 (2019)
Advance of crop loan by co-operatives at zero percent interest in Dharwad District
SB Mahajanashetti and Somanagouda Patil
Karnataka is a predominantly agricultural state with 10 agro-climatic zones facilitating the cultivation of a wide range of crops. The DCCBs occupy an important position in the co-operative credit structure. The finance granted by the DCCBs is given to the cultivators through PACS. Karnataka Government implemented, with effect from 01-04-2012, the scheme of providing short term agricultural loans to farmers at zero per cent interest rate. Though the zero interest crop loan scheme of the state Government implemented through DCC banks is highly attractive for the farming community and such loans are not available either through commercial banks or regional rural banks. To accomplish the objectives of the study, both secondary and primary data were collected. KCC Bank, Dharwad was purposively selected for the study. Further, from each taluk in Dharwad district, two PACS and from each selected PACS, ten beneficiaries were selected randomly. The agriculture loan advanced by KCC bank in Dharwad was almost the short-term loan with medium-term loan having negligible share. The analysis of individual societies indicated that the proportion of the demand for zero per cent interest loan met by KCC bank varied widely across societies from around 12 per cent to 65 per cent. For the district as a whole, it was around 15%. Recovery percentage of zero per cent interest loans was more than 96 per cent. The main constraints in the implementation of zero per cent interest loan as expressed by cooperatives included inadequate funds, delay in getting interest subsidy from the state government and interference by local leaders among others. The important policies suggested by the study are government should create a separate corpus for smooth performance of zero percent interest loan scheme and interest subsidy from the state government should be credited as early as possible to the Central Banks.
Pages: 29-33 | 685 Views 100 Downloads
SB Mahajanashetti and Somanagouda Patil. Advance of crop loan by co-operatives at zero percent interest in Dharwad District. J Pharmacogn Phytochem 2019;8(5):29-33.