NABARD Steps In to Support Kerala Farmers with Rs 500 Cr Loan at Subsidised Interest Rate

In a recent meeting at the NABARD headquarters in Mumbai, NABARD Chairman K V Shaji delivered a momentous announcement to the President of the Kerala State Co-operative Agricultural and Rural Development Bank, C K Shaji Mohan. NABARD has made a significant pledge to provide a generous loan of Rs 500 crore to Kerala farmers at an attractive interest rate of 8.5%. This move comes at a crucial time when farmers in the state have been grappling with financial challenges.

The agricultural sector in Kerala has been facing a difficult period, especially with the financial struggles of Supplyco, a key player in the state's supply chain. The ripple effect of Supplyco's financial issues has put additional pressure on the farmers, who have been eagerly awaiting support to tide them over these testing times. Traditional banks have been hesitant to extend further loans to Supplyco due to its borrowing limitations, exacerbating the problem for farmers.

NABARD's intervention is expected to bring much-needed relief to Kerala's farming community. This financial lifeline not only offers a crop loan at a subsidized interest rate but also aims to restore educational loans that were previously interrupted.

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NABARD, or the National Bank for Agriculture and Rural Development, plays a pivotal role in India's agricultural and rural development. NABARD is a key player in enhancing rural infrastructure, promoting sustainable agriculture, and ensuring inclusive growth in rural areas. It empowers farmers and rural communities through various schemes and initiatives. NABARD is going the extra mile by committing an additional Rs 100 crore under a crop loan scheme modeled on the successful Kisan Credit Card (KCC) program.

The Kisan Credit Card (KCC) on the other hand is a vital financial tool for farmers in India. It enables farmers to access timely and affordable credit for their agricultural needs. KCC holders can avail of crop loans, working capital, and insurance coverage through a single card. This initiative, offered by various financial institutions, eases the financial burden on farmers, promotes agricultural growth, and safeguards their interests, ultimately driving rural prosperity.

This effort aims to make it easier for the state's farmers to get crop loans, thus helping their farming activities.

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The NABARD Chairman, K V Shaji, expressed his commitment to the welfare of the farming community and acknowledged the vital role they play in the state's economy. He emphasized NABARD's dedication to ensuring the well-being of Kerala's farmers and their families. With this substantial financial aid, the agricultural landscape in Kerala is poised to see a positive transformation, enabling farmers to overcome their challenges and continue contributing to the state's prosperity.

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