Delhi, July 5, 2012: As one of the measures to boost credit flow to Agriculture, Union Bank of India has reduced interest rates for various categories under Agriculture up to 175 bps. Now, Crop Loans, Investment Credit and Loans for Allied Activities up to Rs 50,000/- will be available at Base Rate only. Interest rate for lending to Self Help Groups (SHGs) has also been reduced by 175 bps.
The revised interest rates are effective from 1st July 2012. At present, the Base Rate of Union Bank of India is 10.50 %.
The revised interest rate of the Bank for Agriculture is very competitive and attractive. This will be affordable to Small and Marginal farmers and will help them in availing finance from the Bank at cheaper rates.
Union Bank has taken various initiatives for targeted credit flow to Agriculture sector through Agri focused Branches which have been identified for exclusive activities under Agriculture with special focus on post harvest finance and Food & Agro based Industries.
For the benefit of farmers, Union Bank is extending credit under Crop Loan up to double the scale of finance fixed by DLTC (District Level Technical Committee). It also offers 3% Interest subvention upfront to the farmers for their repayment of dues in time for both pre harvest & post harvest finance (For Loans up to 3 lacs).
Union Bank has already launched a new scheme named ‘Project Hariyali’ to provide additional touch points and facilitate the branches to reach out to the farmers with the help of Business Facilitators.
With these measures, Union Bank aims to achieve substantial credit growth in Agriculture Sector during the current Financial Year.
Union Bank’s total business as on March 31, 2012 stood at Rs 4,03,900 crore, with deposits of Rs 2,22,869 crore and advances of Rs 1,81,031 crore. Bank has strong capital adequacy ratio of 11.85% at the end of March 2012. Union Bank has the Vision of becoming No.1 Retail Bank in Customer Service Excellence. It has opened 10 million Financial Inclusion (FI) accounts for branchless banking customers. Further, Bank has designed customized micro-loan products to suit the various specific needs of FI customers.