Vijaya Bank to disburse Rs 175cr agri loans in FY07

The Vijayawada region of Vijaya Bank, through its nine rural branches, 14 semi-urban branches and 16 urban branches, would disburse Rs 175 crore agriculture loans in nine coastal Andhra districts and Chittoor district during 2006-07, M Sadananada Hegde, bank's regional manager, said.

In a unique measure, the bank would give 'produce loans' up to Rs 10 lakh against harvest stored by farmers in warehousing corporations, cold storages and rural godowns.

Hegde told Business Standard that the branch managers, at a recent workshop conducted here, were asked to strictly stick to RBI norms in respect of farm loans and reach targets without fail.

The bank would, in a special drive, reach tenant farmers, who were members of Rythu Mitra Clubs, and give them loans liberally.

He said the region would issue 5,000 new Vijaya Kisan Cards this year, and enable farmers to get farm loans easily. Each rural and semi-urban branch would finance at least 100 new farmers.

It was made mandatory for the rural branches to distribute Kisan cards at the earliest. The bank would also give interest concessions to rain-hit farmers on past farm loans.

Each branch would finance purchase of 25 tractors by farmers, Hegde said, adding the bank had entered into MoUs with tractor companies, which have agreed to slash prices by Rs 5,000 and Rs 7,000.

The bank, on its part, has liberalised acreage criterion from eight acres to four acres. For purchase of a power tiller, the eligibility condition of four acres has been reduced to two acres.

Each urban branch in the region would identify at least 25 new farmers or agri entrepreneurs and give them loans liberally.

All the rural and semi-urban branches would finance two or three investment projects in plantation, horticulture, fisheries, agro processing, livestock, watershed management and village ponds, and allied activities.

He said each rural and semi-urban branch would help at least three farmers in installing drip irrigation and sprinklers systems in their fields. Loans up to Rs 5 lakh would be given without any collateral for setting up small and medium industries.