‘DCC banks may write off loans taken by victims of COVID-19’


The announcement will be made shortly, says Minister of Cooperation S.T. Somashekar.

Minister for Cooperation S.T. Somashekar said on Tuesday that Chief Minister B.S. Ediurappa is considering ditching loans taken from the banks of the District Credit Cooperatives (DCC) by those affected by COVID-19. He added that an official announcement will be made shortly.

Speaking at a program organized to distribute agricultural loans to farmers for the current season from the Misuru District Credit Cooperative Bank (MDCC), Mr. Somashekar, who is also the minister in charge of the Misuru District, said he asked the managing directors of Apex Bank and everyone DCC banks for details on those who took out loans and died due to COVID-19.

The waiver will be announced shortly after all details have been collected.

Mr Somashekar said the Chief Minister wanted to obtain crop loans of Rs 20,810 crore this year to nearly 30,000 farmers. Banks were ordered to meet their 100 percent lending target, as they did last year.

“Last year, the plan for granting loans reached 114 percent. This year, the Chief Minister also asked us to go above the plan. The process of granting loans to cooperative banks for the current season was officially launched recently at the banquet hall in Vidhana Sudha in Bangalore. The Misuru program is the second phase of crop loans after Bangalore and rural Bangalore. I am in Kodagu on Wednesday to pay off a crop loan in the area. In the coming days, I will visit all 21 DCC banks to issue loans to farmers, ”the minister said.

Mr Somashekar said the target last year was to provide crop loans of Rs 15,300 crores to farmers of 24.50 lakhs. However, 21 DCC banks paid out RR17,108 crore, reaching the 114 percent target.

Despite the pandemic and isolation, those who took out crop loans paid back the loan on time, and 95 percent of the loans borrowed from banks were repaid, he said, thanking farmers for repaying despite the hardships.

Regarding the alleged irregularities at DCC’s Shivamogga and Kalaburaga banks, he said steps have been taken over the allegations and a crop loan will be disbursed from these banks shortly. He added that all 21 DCC banks are profitable, and therefore there was no obstacle to issuing new loans to farmers.

Present were MDCC Bank Chairman Harish Gouda, Mysuru Milk Union President Prasanna and others.

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