Considering large-scale crop failures last year, the Maharashtra government has called upon Nabard , Maharashtra State Cooperative Bank and other cooperative banks to offer refinance crops loans worth Rs 2,000 crore, Business Line reports .
The last year’s whimsical monsoon had caused farmers to suffer heavy crops losses. The refinancing of loans would mean farmers’ repayment period will be extended from one year to five years. The State government would support the refinancing by underwriting the interest cost of Rs 300 crore.
Officials say Nabard would refinance 60 per cent of the amount, while Maharashtra State Cooperative Bank 15 per cent of the amount and the rest will be taken care of by smaller banks, officials said.
Report adds last year, large swathes of Marathwada, Vidarbha and some districts of northern and western Maharashtra had reported crop failure after both seasons.