May 30, 2024

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KVG Bank launches OD facility for farmers

The Dharwad-headquartered regional rural lender, Karnataka Vikas Grameen Financial institution (KVGB), has introduced an overdraft (OD) facility for farmers.

Talking at the start of the ‘Kirishi OD’ scheme developed for farmers, P Gopi Krishna, Chairman of the lender, mentioned that the farmers are furnished with an OD facility based on the price of the land. The limit is capped to a greatest of ₹1.5 lakh for every acre to irrigated lands and ₹1 lakh for every acre to dry land.

The facility can be applied for performing cash specifications these types of as servicing of machinery and gear, mend and alternative of machinery, agricultural allied activities and even for the compensation of private loans availed for personal use.

He mentioned the uncontrolled weather conditions, escalating natural disasters, and the present Covid situation have produced farmers vulnerable. “To relieve the situation, KVGB has developed a unique OD facility for the farmers to assistance them to cope with the situation,” he included.

Neeraja Kumara Verma, Main General Manager of NABARD, who introduced the scheme in Dharwad, mentioned that credit movement is necessary for the expansion of the agriculture sector and regional rural financial institutions (RRBs) are accomplishing nicely in this regard. He mentioned the ‘Krishi OD’ facility is a exceptional scheme and will advantage the farming group.

Verma mentioned that NABARD is keenly watching the progress and involvement of RRBs and extending well timed direction and aid. “RRBs are accomplishing nicely underneath priority sector lending, development and linkage of SHGs and JLGs and even in running microfinance issues.”

A press launch by KVGB mentioned that he lauded the attempts of KVGB in issues related to money inclusion.