Bhubaneswar: A memorandum of understanding (MoU) was signed between NABAKISAN Ltd, a subsidiary of NABARD and Agriculture and Farmers’ Empowerment Department for providing access to collateral free loan facilities by farmer producer organisations (FPOs) in the State from the financial institutions.
As per the MoU, a separate Credit Guarantee Fund to the tune of Rs 10 crore will be created by the State Government. It will be administered by NABKISAN Ltd and pave way to provide collateral free loans by the financial institutions of the State to the FPOs functioning in the State. The loans given by the Public Sector Banks and NABAKISAN to the FPOs will be guaranteed under the Credit Guarantee Fund.
Chief Minister Naveen Patnaik was present during the MoU signing ceremony between Agriculture and Farmers’ Empowerment, Horticulture Director Dr Bijay Ketan Upadhyay and NABAKISAN CEO Neeraj Sharma at the State Secretariat here.