AGRICULTURAL LOAN IN KARNATAKA

AGRICULTURAL LOAN IN KARNATAKA

How a farmer can get Agricultural loans through co-operative institutions?

A farmer has to first enroll himself as Primary member in the co-operative institution by paying a membership fee and producing land records. Then     he will have to apply for sanction of NCL(Normal Credit limit) for three years. Quantum of Loan requirement will be ascertained based on the Land     holding and crop grown and he will be sanctioned NCL after the approval by the Board of directors of concerned District Central Co-operative Bank.     With in this NCL, a farmer will get crop loan depending on the funds available in the PACS and DCC Bank. Crop insurance is compulsory for a farmer     to avail crop loan. Premium of crop loan will range from 2.00 to 5.00 % of the loan amount. This will help him in case of loss of yield occurred due to     deficit or excess of rain fall, damage by pest and diseases and natural calamities. By renewing the KCC account, paying the crop insurance and     personal accident insurance premium every year, a farmer can minimize the risk of yield loss occurred due to seasonal weather fluctuation.


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