Bhubaneswar: Chief Minister Naveen Patnaik on Saturday announced the reduction of share linkage of cooperative societies for farmers to avail agricultural term loans from the existing 10 percent to nominal fixed rates.
The share linkage of cooperative societies will now be as follows:
- Loan up to Rs 5 lakh – Rs 500
- Loan up between Rs 5 lakh to Rs 10 lakh – Rs 750
- Loan above Rs 10 lakh and up to Rs 15 lakh – Rs 850
- Loan above Rs 15 lakh – Rs 1, 000
The state government has decided that instead of collateral, the asset created or acquired by the term loan may be secured by charge created and hypothecation of the assets.
The cooperative banks have been playing a pivotal role in dispensation of crop loans in the state. The share of cooperative sector is over 65 percent at the national level. The decision regarding reduction of the share linkage of cooperative societies was taken with a view to improve the share of cooperative banks in providing agricultural term loans.
