Bhubaneswar: The Odisha chief minister, Naveen Patnaik, Saturday directed for the reduction of share linkage of cooperative societies to enable farmers to avail agriculture term loans at nominal fixed rates instead of the existing 10%.
As per the directive, the share linkage of cooperative societies will be as follows:
- Loan upto Rs.5 lakh — Rs 500,
- Loan between Rs.5 lakh to 10 lakh—Rs750
- Loan above Rs 10 lakh and upto 15 lakh – Rs850
- Loan above Rs.15 lakh — Rs1000
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.
The cooperative banks are playing a pivotal role in dispensation of crop loans in the State. The share of the cooperative sector is over 65% at the state level, while the same is only about 16% 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.