No more agri gold loans to non-farmers from October 1, Centre to issue order soon
Thiruvananthapuram: The central government is planning to limit distribution of agricultural loans by pledging gold among farmers only. With this, non-farmers will not be able to apply for agricultural loans by pledging gold.
The government is likely to implement the new rule from October 1.
The Union Ministry for Agriculture has observed that there is no need to give loan upto Rs 3 lakh with 4 percent interest to non-farmers. Representatives of the ministry has revealed this stand while addressing the heads of public sector banks in a video conference.
However, neither the state government nor the state level Bankers Committee has received a final order regarding this.
It is learned that a final decision will be taken after considering the report of the central team who inspected banks.
If the centre’s recommendation comes into force, people who hold Kisan credit card and certificate which prove he or she is a farmer will get agriculture loan by pledging gold. Only these farmers will get subsidy.
With this, non-farmers will have to pay a higher interest rate of 9 percent for gold loans.
“Official order on this will be issued by September 30,” said Bankers Committee representatives.
At the same time, the state government also expressed disappointment over approving gold loans in lower interest rate to non-farmers.
The central team who inspected the banks in Kerala also observed that large number of non-farmers are illegally receiving such benefits. Meanwhile, the recommendation in the video conference revealed that the Centre has planned to restrict distribution.