Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Saturday directed the reduction of share linkage of cooperative societies to enable farmers to avail agriculture term loans from the existing 10 percent to nominal fixed rates.
As per the new decision, the share linkage of cooperative societies will be
- Loan up to Rs.5 lakh –Rs.500,
- Loan between Rs.5 lakh to 10 lakh—Rs.750
- Loan above Rs 10 lakh and up to 15 lakh – Rs.850
- Loan above Rs.15 lakh — Rs.1000
It has also been 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.
It may be mentioned here that the Cooperative Banks are playing a pivotal role in the dispensation of Crop Loans in the State. The share of the Cooperative Sector is over 65 percent at the State level, while the same is only about 16 percent at the National level.
In order to improve the share the Cooperative Banks in providing Agriculture Term Loans, the State Government has decided to reduce the share linkage of Cooperative Societies and simplify the procedure for creation of charge.