Banks to continue issuing low-interest agri-gold loans

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Thiruvananthapuram: The Reserve Bank of India (RBI) has not issued written instructions to scrap low-interest agriculture gold loans, State Level Bakers’ Council (SLBC) chairman RA Sankaranarayanan has said. This means banks will continue to issue them, he added.

Currently farmers get easily renewable gold loans of up to Rs 3 lakh for 4 per cent interest. Others have to pay 9 per cent. Banks have no other way but to believe the customer when he claims to be a farmer, Sankaranarayanan said on the question of eligibility.

Central finance secretary in a video conference had informed that these agriculture loans will be scrapped from October 1. However, no written order has come.

Considering the slowness in automobile markets, it has also been decided that small and medium traders’ loans prior to March 20 will be renewed.

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