After announcing credit at three per cent to farmers, the Madhya Pradesh government has demanded Kisan Cards and agri loans to forest dwellers, too. However, the state forest department has yet to provide data to bankers.
The state government has issued a letter to the state bankers seeking loans of Rs one lakh and Kisan Credit Cards for the forest dwellers. It has already issued pattas to almost all land holders. “All our forest dwellers have now patta of their forest lands. Also they collect minor forest produce which is an additional source of income, they can also be given loans without collateral security,” said a forest official. The bankers, however, yet not ready to offer agri loans or kisan credit cards to the forest dwellers. Beside other issues, forest dwellers in Madhya Pradesh are tribals and their land cannot be sold to non-tribal people and hence bankers are apprehensive of recovery.
“We are discussing with the state government and are also working out at business model so that we can offer them loans and kisan credit cards,” S Sridharan, chairman of Central Bank of India said.
State cabinet on Tuesday, announced to offer short term agri loans to farmers through cooperative banks. The government made a budgetary announcement last year and also made provisions of Rs 100 crore for the purpose. As of now, farmers get loans at five per cent from cooperative banks.
