Bangalore, July 23: Canara Bank has reduced interest on crop loans from 11 to 9 per cent. Loans up to Rs 50,000 for crop cultivation would now carry a simple rate of interest of nine per cent per annum, which has been brought down from 11 per cent, a bank release said on Tuesday. The reduction is expected to benefit 9.51 lakh small and marginal farmers and agricultural labourers who are availing loans from the bank for crop cultivation, it said.
During 2002-03, the outsanding agricultural advances increased from Rs 3,888 crore to Rs 5,407 crore, recording 39 per cent growth. Fourteen lakh farmers received the bank's assistance during the year.
The bank proposes to increase outstanding agricultural advances to Rs 7,100 crore by March end.
The bank is observing "Khariff Campaign" in July and August for financing crop cultivation all over the country and it proposes to issue 1 lakh Kisan Credit Cards.
It also proposes to give focus to agri business and agri exports by concentrating on Agri Export Zones declared by the Union government, the release said. Bureau Report