KVG Bank plans to launch the OD facility to support farmers

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Karnataka Vikas Grameen Bank (KVGB), headquartered in Dharwad, has recently announced the launch of overdraft facilities exclusively for farmers. The new scheme will be known by the name ‘Kirishi OD’ scheme. P Gopi Krishna, Chairman of Karnataka Vikas Grameen Bank stated that the farmers will be provided with OD facilities by the bank based on the value of the land they possess.

Under the ‘Kirishi OD’ scheme farmers can get OD to a maximum of Rs.1.5 lakh per acre of irrigated lands and in case of dry land the limit is capped to a maximum of Rs. 1 lakh. Working capital requirements like maintenance of machinery and equipment repair and replacement of machinery, agricultural allied activities, and the repayment of private loans availed for personal use can be met by the farmers by making use of the new scheme.

As of now, farmers have been made vulnerable by factors such as uncontrolled weather, escalating natural disasters, and the current COVID-19 situation, ‘Kirishi OD’ scheme will ease these burdens of farmers by providing them financial support and will help them to cope with these uncertain situations.

Chief General Manager of NABARD, Neeraj Kumar Verma has launched the scheme in Dharwad. Verma states that in this current scenario credit flow is essential for the growth of the agriculture sector and Regional Rural Banks (RRBs) are working for solving the credit issues related to the agricultural sector. Verma added that Kirishi OD is a unique scheme and this will benefit the farming community.

NABARD is closely watching the progress and involvement of various Regional Rural Banks and they extend timely guidance and supports to the banks. RRBs concentrate more on priority sector lending, formation and linkage of Self Help Groups and Joint Liability Groups (JLGs), and even in managing microfinance matters. Reports state that KVGB’s efforts in matters related to financial inclusion are commendable.

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