Punjab Chief Minister Bhagavant Man has advised those who have missed co -operative banks to quickly recover loans so that there is no obstacle for loans to agriculture and its relevant areas. He said that the Chief Minister reformed the functioning of the co -operative banks and that there were those who fail to repay their loans in a timely manner, which is why banks cannot provide financial assistance to others.
Big farmers are being failed
Bakwant Man said that small and medium farmers are repaying their loans in a timely manner, while large farmers are often default. This is a serious issue for banking systems. If civil servants also take loans from co -operative banks, they must pay their installments in a timely manner. The government has made it clear that the relaxation will not be given in this regard.
Crop Credit Recovery is only up to 65%
Retrieving crop loans is only up to 65%, which affects the health of the co -operative banks. Co -operative banks offer a 3% interest discount in a timely manner to repay the loans to the farmers. Nevertheless, many farmers do not repay the loan, so that they will not only pay more interest, but in the future they will lose any profit or debt.
Farmers have 8,000 crore crop loans each year
According to the government, 3,523 co -operatives are given about Rs. 8,000 crore crop loans to state farmers every year. This loan is available at a 7% interest rate, and 3% of the discount is issued in time repayment. But if the loan is not repaid in a timely manner, the interest rate increases to 9.5%.
The CM gave instructions to the department
In order to promote the Principal Agricultural Co -operative Societies (PACS), which has the best registration of crop loans, the Chief Minister has ordered the Department to highlight these cooperatives, so that these groups can be increased as a role model in the co -operative field. During the meeting, it was reported that the debt recovery rate of cooperative communities that fell in the Duri circle was 99 percent and the Duri circle was an example. Bhagwant Singh Mann asked to organize a ceremony to raise these groups.
The Chief Minister expressed concern over Nabart’s annual concessionary loans in 2024-25, saying that Punjab would contribute more to the country’s food security and that debt borders had affected the agricultural sector. Bhagavant Singh Man Man said that he would take this matter before NABARD’s leader to recover the debt limit for the fiscal year 2025-26.
