South Canara District Central Cooperative Bank Ltd will be extending loans to farmers for animal husbandry at three per cent interest rate.
Mr. M.N. Rajendra Kumar, President of the co-op bank said that the scheme will boost animal husbandry in Dakshina Kannada and Udupi districts.
Mr. Gopalakrishna Bhat, Managing Director of the bank, said that a farmer who holds 25 cents of land (one-fourth of an acre) can get loan amounting to Rs 70,000 under the scheme to rear one cow and for the construction of the shed. It is a three-year term loan.
A farmer with minimum five acres of land can avail loan for up to Rs 10 lakh, Mr. Bhat said. Around Rs 20 crore has been extended to farmers under this scheme in the past three years.
Mr. Bhat also said that the bank recorded 97 per cent recovery under this scheme.
As all milk cooperative societies in the districts of Dakshina Kannada and Udupi have their accounts with the co-op bank, Mr. Bhat said the bank entered into a tri-partite agreement with the cooperative societies and the farmers.
"Since the bills of the cooperative societies are settled through (this) bank, we don't have any problem in loan recovery," Mr. Bhat said.
Mr. Rajendra Kumar said that many farmers in these two districts have small land holdings. At the same time, there is also a good potential for milk production in the region. Keeping this in mind, the scheme was extended to include farmers with only 25 cents of land.