Cooperation dept to start micro-financing in State

Cooperation dept to start micro-financing in State

Amendment to Act to crackdown on money lenders : Minister

Cooperation dept to start  micro-financing in State

 Minister for Cooperation Lakshmana S Savadi at a review meeting, in Mysore on Wednesday. Dh PhotoAlso, the amendment seeks to start micro-financing for street vendors, small businessmen in towns and cities. 

Minister for Cooperation Lakshmana S Savadi has said the Cooperative department would soon start micro-financing schemes to help the small vendors on nominal 10 per cent interest per annum to prevent them from borrowing loan for higher interest from money lenders.

The department was looking at the Bangladesh model for the programme, he told reporters.

In a news conference here on Wednesday, he said a team of senior officals of his department would visit Bangladesh in the first week of September to study the model. “The micro-financing programme is successful in Bangladesh and has helped the poor access better life standards,” he remarked.

Besides serving the vendors, the scheme would curtail the influence of the money lenders who charge more interest. The amendment seeks to put the money lenders and pawn brokers behind the bars if caught charging higher interest to the poor and gullible people.

The micro-finance loan can be availed on daily interest or for three-days or a week, he said.  Also, a vigilance committee would be set up to keep track of non-licenced money lenders. The Act will be tough on these violations he added.

Asked about the menace of the housing societies, he said the officials are also directed to list the Housing societies which have violated the regulations. “The housing societies are in very big numbers in Bangalore and Mysore. The bogus societies and those running flouting the rules will be listed and strict action will follow against such bodies,” Savadi said.

The amendment is likely to be placed in the coming Assembly session, the Minister added.


Under the three per cent loan scheme, he said all cooperative societies and banks are directed to bring all the farmers under the programme. Those who availed benefit of the scheme are repeatedly getting the benefits. While, others are still excluded. Hence, all Cooperative units would be asked to register 75 per cent new beneficiaries while selecting the new members. And, 90 per cent of the loan amount should be disbursed among the new farmers and the rest to others. It would be mandatory on the bodies to ensure 100 per cent coverage for the SC/ST farmers, he said adding that the Udupi and Koppal districts in the State achieved 100 per cent coverage of all the farmers under the three per cent loan programme.

“The department has spent about Rs 871 crores under various programme like farmer loan, loans for SHGs at 4 per cent interest, Yeshaswini scheme, Rs two subsidy to milk cooperative socities and interest-free loans to cooperative societies,” the Minister disclosed.

He said the department would share 50 per cent of the cost for the Coffee package announced by the Central Coffee Board for growers in Hassan, Chikamagalur and Kodagu.

The Government was committed to implement the Vaidyanthan report, he stated.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)