Share linkage of coops reduced

BHUBANESWAR:   Chief Minister Naveen Patnaik on Saturday directed that share linkage of cooperative societies should be reduced from the existing 10 per cent to nominal fixed rates to enable farmers to avail agricultural term loans. It has also been decided that instead of collateral, the asset created or acquired by the term loan may be secured by charge created and hypothecation of the assets.

Cooperative banks play a pivotal role in dispensation of crop loans in the State. The share of the cooperative sector is over 65 per cent in the State compared to 16 per cent at the national level. the State Government has decided to reduce the share linkage in order to improve the share of the cooperative banks in providing agricultural term loans.