Fishing boat owners, who have applied for loans under the Kisan Credit Card (KCC) scheme, say that certain banks were not entertaining their application forms.
“Some banks, especially a section of nationalised banks, do not want to give us loans. They want to give only ₹20,000 as loan, which is hardly enough for us to buy nets, boats or engines,” said Kabaddi Maran, a community leader.
A retired official of the Fisheries Department said that this problem was mainly seen in urban areas where in most cases fishermen did not come under the control of the fishing hamlet’s panchayat. “Nationalised banks are hesitating because under the deep sea fishing scheme, repayment has not been proper. Many have ended up as NPAs. They are afraid that these fishermen too would not repay expecting a loan waiver,” he said.
In rural areas such as in Tiruvallur district, the village panchayats take the responsibility of repaying the loans. “One village, Periya Mangodu, has been so good at repaying that the previous batch of 60 persons have paid the amount and now 80 men want loans. If one man does not repay, the others will ensure that he does,” said another source.
Sources in the department said the requirements vary from person to person. Some want to purchase boats, nets, while others want to repair boats and yet others need the loan for working capital. “The banks and the department have worked out the loan amounts for various requirements. For country craft, the working capital can be ₹60,000 and the investment amount up to ₹1 lakh. For daily boats, working capital would be ₹75,000. Similarly, crafts that travel for 2-5 days and multi-day boats too have an amount fixed,” he said.
