KVG Bank launches OD facility for farmers

The Dharwad-headquartered regional rural financial institution, Karnataka Vikas Grameen Lender (KVGB), has launched an overdraft (OD) facility for farmers.

Talking at the start of the ‘Kirishi OD’ plan designed for farmers, P Gopi Krishna, Chairman of the financial institution, explained that the farmers are furnished with an OD facility based mostly on the value of the land. The restrict is capped to a optimum of ₹1.5 lakh per acre to irrigated lands and ₹1 lakh per acre to dry land.

The facility can be made use of for performing money demands these kinds of as routine maintenance of machinery and devices, maintenance and substitute of machinery, agricultural allied routines and even for the compensation of private financial loans availed for personalized use.

He explained the uncontrolled weather conditions, escalating pure disasters, and the present-day Covid predicament have designed farmers vulnerable. “To simplicity the predicament, KVGB has designed a unique OD facility for the farmers to enable them to cope with the predicament,” he extra.

Neeraja Kumara Verma, Main Standard Supervisor of NABARD, who launched the plan in Dharwad, explained that credit score move is important for the growth of the agriculture sector and regional rural banks (RRBs) are doing effectively in this regard. He explained the ‘Krishi OD’ facility is a exceptional plan and will profit the farming group.

Verma explained that NABARD is keenly observing the progress and involvement of RRBs and extending timely direction and assistance. “RRBs are doing effectively less than priority sector lending, development and linkage of SHGs and JLGs and even in controlling microfinance issues.”

A push launch by KVGB explained that he lauded the initiatives of KVGB in issues linked to fiscal inclusion.