Karnataka Vikas Grameen Bank (KVGB) based in Dharwad, Karnataka has launched a new overdraft (OD) facility for the farmers. Talking at the launch event of the 'Kirishi OD' scheme intended for the farmers, Chairman of the bank, P Gopi Krishna said that the farmers are given an OD scheme dependent on the estimated value of the land. The maximum is set at a limit of 1.5 lakh for every acre of farming land and 1 lakh for every acre of dry land.
The OD facility can be utilized for working capital needs, such as, for hardware and machinery maintenance, fixing and changing of machinery, activities associated to agriculture and for the reimbursement of private loans profited for individual use.
Mr. Krishna added that the uncontrolled climate, heightening natural events, and the current pandemic circumstance have made farmers defenseless. "To facilitate the circumstance, KVGB has planned an exceptional OD facility for the farmers to assist them to adapt to the circumstance," he added.
Chief General Manager of NABARD, Neeraja Kumara Verma dispatched the plan in Dharwad, explained that credit flow is basic and necessary for the development of the agribusiness sector and RRBs (Rural Banks) are doing great in such manner. He said the 'Krishi OD' scheme is an interesting plan and will profit the farming people.
Mr. Verma further added that NABARD is closely watching the advancement and association of RRBs and is providing adequate advice as well as backing them whenever required. "RRBs are functioning very well under priority sector lending, development and linkage of SHGs and JLGs and even in overseeing microfinance matters."
