SBI launches litchi, mango credit cards

After kisan credit cards, it is now turn of the "Litchi credit card and mango credit card".

The State Bank of India (SBI) has come out with these two versions of the credit cards for orchard owners in the state.

"This is a special scheme specially carved out for the litchi and mango orchard owners in Uttaranchal. This is the first time that such a scheme is being introduced in the country," said Y K Lumba, assistant general manager (AGM), SBI.

The main purpose of the scheme is to provide finances to farmers for annual recurring expenditure on litchi orchards in the litchi growing areas of Udham Singh Nagar, Dehra Dun and Nainital districts where litchi orchards are found in large number.

"Our aim is to link these credit cards with our ATMs so that farmers can withdraw loan facilities as and when they require," said Lumba.

The SBI is targeting nearly 300 litchi orchard owners in the first phase. For mango credit cards, the target is 200. To start with, SBI provided loan facilities to nearly 23 farmers in Kahipur town during the weekend.

For the loan up to Rs 50,000, the rate of interest is 8.5 percent while loan between Rs 50,001 and Rs 2 lakh, the rate of interest is 9.5 per cent.

"This interest rate is expected to come down to 7 per cent in future," Lumba said. Above Rs two lakh, the rate of interest is 10.25 per cent.

With the annual recurring expenditure over litchi growing, farmers at times plead their helplessness to spend money on these orchards, said N C Nainwal, the Coordinator of Agri-Export Development Unit (AEDU). "This scheme will help farmers to increase their litchi and mango production," said Nainwal.

At present, Uttaranchal has an area of 9,000 hectare under litchi cultivation. Since, Uttaranchal wants to increase its litchi exports, the government is bringing out special schemes to boost litchi production.