AP Grameena Bk to give cattle as loan

Starting a new trend in rural credit, the State Bank of India-sponsored Andhra Pradesh Grameena Vikas Bank (APGVB) is planning to distribute cattle instead of cash to 1,000 families in Vizianagaram district on Tuesday.

The bank has devised an end-to-end scheme wherein Visakha Dairy will procure milk from each of these families and credit the amount to their accounts opened by the bank. The bank, in turn, will deduct the regular installments towards loan repayment and keep the extra earnings at the beneficiary's disposal.

K Anantha Krishna, chairman and managing director of APGVB, said the cattle had been procured with the help of a committee comprising veterinary experts. The cost of the cattle is Rs 12,000 each. The bank has already entered into a tie-up with Visakha Dairy for the procurement of milk from all the 1,000 families, he added.