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Kwality and BOB to disburse soft loans to dairy farmers to buy animals
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Saturday, 24 June, 2017, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Kwality Limited and Bank of Baroda (BOB) have entered into a memorandum of understanding (MoU) to provide soft loans to dairy farmers for the purchase of animals, smartphones and motorcycles. The scheme is proposed to continue over a period of three years, and would cover 1,00,000 dairy farmers in three states, namely Uttar Pradesh, Rajasthan and Haryana.
The important part of the scheme is that the farmers do not have to provide any collateral guarantee to obtain the loan. The insurance policy of the dairy animals would be pledged to the bank as a guarantee.
Kwality Limited and BOB have been working over the past four months to identify the eligible farmers, and have already given sanctions amounting to Rs 27 crore to about 1,200 farmers.
The sanction letters were distributed to dairy farmers at recent functions in Fatehabad, Haryana, by the state chief minister Manohar Lal Khattar, in Sardarshehar, Rajasthan, by minister of state for finance Arjun Ram Meghwal and at a credit camp organised by Kwality Limited and Bank of Baroda in Sirsa, Haryana by R S Khanna, the former’s chairman, and Arora, deputy general manager, Bank of Baroda, Karnal.
To ensure that the farmers would buy good quality cows and buffaloes, Kwality Limited has set up animal purchase hubs in locations close to Ajmer, Fatehabad, Sardashaher and Rohtak, to which ten suppliers brought cows and buffaloes. About 75 farmers have already purchased close to 200 cows and buffaloes.
The participating farmers were selected from amongst those who have been regular suppliers of milk to Kwality Limited. They have given a written undertaking to the bank to continue to give milk to the company and have opened accounts in the bank.
Kwality has given an undertaking to buy milk from these suppliers on a continuous basis and make credit payments directly into the accounts of the loanees. The bank would deduct the equate monthly installments (EMIs) from the accounts of the loanees, who have to repay the loans over a period of three years.
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