Bhubaneswar(PTI): The Odisha government today said it has decided to extend agricultural loan to landless farmers on the lines of credit given to self help groups (SHGs), Cooperation Minister S N Patro said.
The loans would be disbursed by cooperative societies to joint liability groups. Each such group will have five farmer members who will collectively be provided with a term loan of Rs 50,000 with one per cent interest. The loan will be extended without any collaterals.
Besides, small farmers having their own land will be provided the loan in proportion to the area of the land, Patro said.
Each cooperative society will have to provide the loan to at least 10 groups, he said, adding that the loan to these landless farmers would be provided during the Kharif season which is about to begin.
So far, the government had no provisions to extend loans to landless farmers.
The loans will be provided through different cooperative banks and societies instead of commercial banks, Patro said.
Chief Minister Navin Patnaik has directed disbursement of Rs 7,200 crore loans to farmers during the kharif season of which Rs 200 crore would be earmarked for landless farmers, Patro said.