The Karnataka Central Cooperative (KCC) Bank, the district central cooperative bank for Dharwad, Haveri and Gadag districts, will set up 200 SHGs during the next financial year. Managing director Manjunath Naik said these SHGs would be provided loans at 4 per cent interest rate without any collateral security and Rs 7 lakh would be disbursed to the existing SHGs before this March-end.
KCC Bank, which was in the red, is now on the path to recovery.
The bank has so far disbursed Rs 74 crore in agriculture loans to 35,000 farmers at an interest rate of 3 per cent. Of these 13,000 are new members and have been given loans to the extent of Rs 20 crore.
Naik said the bank had set a target to disburse Rs 200 crore as agriculture loans and Rs 5 crore as medium term loans. Regarding the recovery of loans, he said the bank had recovered 42 per cent of the crop loans so far.