West Bengal's SLBC to increase rural loans from Rs 4400 cr to Rs 10000 cr

The State Level Bankers’ Committee (SLBC) in West Bengal has decided to go for a more than two-fold increase in Kharif loan this season. The quantum of loan for West Bengal will be increased from Rs 4400 crore to Rs 10000 crore. Also, the extent of Kisan Credit Card loan will be extended to nearly 4.6 million farmers. A number of small and marginal farmers will also be taken under the fold of KCC in the state.

In addition, West Bengal will also request the Reserve Bank of India (RBI) to increase the additional credit limit to MSMEs, to 30 per cent from the existing 10 per cent. In FY 2019-20, a credit of Rs 74000 crore was extended to MSMEs. This year, the target has been revised to Rs 90000 crore.

The extent of self help group (SHG) coverage will also be more than doubled this year. The number will be increased from 517000 to nearly 1 million. The loan target to SHG groups has been enhanced to Rs 15000 crore this financial year. An additional limit of Rs 5000 crore will also be given to SHGs, subject to a cap of Rs 1 lakh per SHG.

Also, more than 100,000 fishermen in the state will be issued KCC. A total of Rs 500 crore will be extended to the fishermen under KCC.

The SLBC meeting was attended by Amit Mitra, finance minster West Bengal and SS Mallikarjuna Rao, Chairman, Punjab National Bank, among other senior officials.