Agriculture sector likely to seek more credit

By TheHindu on 17 May 2017 | read

Agriculture and Micro, Small and Medium-scale Enterprises (MSMEs) are expected to see higher credit off-take in Coimbatore district this financial year.

According to the annual credit plan prepared by the district lead bank, the outlay for agriculture this year is Rs. 6,431 crore, which is 12 % more than 2016-2017.

The credit target for MSMEs is 18 % more at Rs. 7,355 crore.

The total credit outlay for the district this year is 15 % more at Rs. 16,401 crore. The target for last financial year was Rs. 14,249 crore and the actual loans disbursed were to the tune of Rs. 14, 522 crore.

In the agriculture sector, the emphasis is on technology, horticulture crops, green house, and agri bio-tech projects.

Loans are disbursed for wasteland development, setting up of godowns and cold storages, and providing marketing infrastructure.

The credit outlay includes loans for minor irrigation activities, animal husbandry, agri business centres, food processing, vermi composting, and mushroom cultivation.

In the case of MSMEs, Coimbatore is a hub for micro and small-scale units and the MSME Act 2006 emphasises on development of the sector.

The other priority sector - housing, education loan, renewable energy, social infrastructure, self help groups and export credit - will also a 15 % higher credit off take this year (Rs. 2615 crore).

The annual credit plan looks at loans given by banks and financial institutions under government schemes for entrepreneurship development, and direct linkage of SHGs in the district based on the guidelines of the government.