45
cases, banks in the district/State, appoint advocates to do a thorough search. The
charges of Rs. 600/- to Rs. 700/- (at the time of loan renewal, the charges are Rs.
200/-), are loaded on to the farmers, who protest the additional charges levied by
the bank. Similarly, the same is also true with the availability of ‘
Khasra
’ (detail
of all the fields with its measurement, name of owners, crops being cultivated on
it) which should normally be provided by the
Lekhpal
free of cost.
Composite Loan
3.40 The KGSGB indicated that they were not in a position to provide composite loan
under KCC since there were instructions to the contrary. The Karnadandi branch
of KGSGB indicated that they were required to open separate accounts for crop
loan, tractor financing, dairy, etc., as the Finnacle CBS software does not allow
interest calculation separately for crop loan and ATL, i.e., at different rates of
interest. These observations were made by UBI, Prathama Bank and Syndicate
Bank also.
Rate of Interest
3.41 The ultimate rate of interest charged by banks to KCC farmers for loan up to
Rs. 3.0 lakh was governed by government policy of interest subvention and
incentives for prompt repayment. As of now, Government of India is providing
2 per cent interest subvention to banks to enable them to provide KCC loan to
farmers at 7 per cent. In addition to subvention, GOI also provides an incentive
of 3% to farmers who repay their loan promptly i.e. within the due date. Some
State Governments provide an additional subvention to banks and incentive to
farmers in addition to what GOI is providing. The additional interest subvention
and additional incentives given by state governments, if any, is presented in Table
3.9.
Table- 3.9: The present rate of Interest Subvention and Incentives
being offered by GOI & State Governments
Sr.
No.
State
Loan Amt
Interest Subvention
(%)
Incentive for
prompt repayment
(%)
Total
subvention
and
incentives
(6 + 9)
Rate of
interest
to
prompt
payee
farmer
State
Govt
GoI Total State
Govt
GoI Total
1
2
3
4 5 6 7 8 9
10
11
1 Assam $
Upto Rs.1 lakh -
2 2
-
3 3
5
4
1-3 Lakhs
-
2 2
-
3 3
5
4
2
Bihar
Upto Rs.1 lakh -
2 2
-
3 3
5
4
1-3 Lakhs
-
2 2
-
3 3
5
4
3
Karnataka
Cooperative
Upto Rs.1 lakh -
2 2
4 3 7
9
0
1-3 Lakhs
-
2 2
4 3 7
9
0
Karnataka
RRB &
Comm Banks
Upto Rs.1 lakh -
2 2
1 3 4
6
3
1-3 Lakhs
2 2
-
3 3
5
4
