Agri Land OK for Education Loan Collateral Security

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Published: September 10, 2011 00:00 IST | Updated: September 10, 2011 04:02 IST

Education loan scheme to benefit farmers' children

Staff Correspondent

Launch: Chairman of Karnataka Vikas Grameena Bank C. Sambasiva Reddy releasing booklets on the new education loan scheme for farmers at the Krishi Mela in Dharwad on Friday
Karnataka Vikas Grameena (KVG) Bank has launched a new education loan scheme, designed exclusively for the children of farmers.
Chairman of KVG Bank C. Sambasiva Reddy launched the unique scheme aimed at helping farmers during the inauguration of the bank's stall at the four-day Krishi Mela being organised by the University of Agricultural Sciences (UAS), Dharwad.
Mr. Reddy said that under the new scheme, farmers would be able to mortgage their agricultural lands for getting education loans for their wards.
“Usually while applying for the education loans above Rs. 7.5 lakh, collateral securities such as NSC/KVP have to be provided or house/residential plots (non-agricultural land) should be mortgaged. Till recently, mortgaging of agricultural lands for education loans was not allowed,” he said.
Mr. Reddy said that the State Government had now enacted an amendment and given a green signal to accept agricultural land as collateral security for education loans.
“KVG Bank has designed a new education loan scheme, which suits the children of farmers who aspire to go for higher studies. The bank also issued directions to all its branches to encourage meritorious children of farmers,” he said.
Elaborating on the bank's initiative to reach more villages, Mr. Reddy said the bank's unique campaign, ‘Reaching towards farmers', was getting a good response. So far, the bank had covered more than 7,000 fresh farmers through the campaign, he said.
He said the bank's stall at the Krishi Mela aimed at sensitising farmers on various schemes. “Last year, over 3 lakh people visited the bank's stall and this year we expect more. Arrangements have been made to provide all the information to farmers at the stall itself,” he said.