Patna, Dec. 13: In a bid to promote farm and small-scale industries in the state, Bihar’s deputy chief minister Sushil Kumar Modi today said the government would organise farm loan fairs at block levels.

He asserted that the state would also organise a conference of tiny industrial entrepreneurs to boost the credit flow to augment overall growth in the state.

“The banks have disbursed Rs 10,811 crore loan by the end of second quarter of the current fiscal against the target of annual credit plan of Rs 37,000 crore. The loan disbursement is 36 per cent up in comparison to last year’s Rs 7,788 crore in the same corresponding period and hence to boost the credit flow we have decided to organise a farm loan fair at block levels on January 10 where farmers could avail all kinds of loans under one umbrella,” Modi told reporters after holding a state-level bankers meet with government’s and banks’ top officials.

The farmers could get all kinds of loans such as Kisan Credit Cards (KCC), crop loan, dairy, poultry, fishery, farm mechanisation, crop insurance at the loan fair, which would be organised on 10th of every month for the next three occasions, Modi said.

He added all public sector banks, co-operative and rural banks and officials of these banks would be available at the fair to assist and hear the farmers’ grievances.

Stating that government has set a target of distribution of 20 lakh KCCs at the fair, he said so far the government has been able to meet the target of 7.16 lakh KCCs till September 2010.

Besides giving thrust to the farm sector, the government has made its intentions clear with regard to laying a network of small-scale industries in the state to tackle with the problem of unemployment.

“The state government wants to give special emphasis to promote industries particularly the small and micro industries as this will tackle the problem of unemployment to a great extent,” Modi, who also holds the finance minister portfolio, said.

“The government intends to organise a conference of small-scale industrialists and entrepreneurs who wish to set up their own industries to create a conducive industrial atmosphere in the state,” he said.

Banks should not hesitate in providing loans to those who wish to set up their own industry as one has not to submit any collateral or give any guarantee for getting industrial loan up to Rs 1 crore as per the Credit Guarantee Fund Trust for Micro and Small Finance (CGTMSF), the minister said.

He added as per the Centre’s scheme, banks would be reimbursed up to 80 per cent of their loan amount if the firm collapses.

Similarly, government has announced that those persons with an annual income of less than 4.5 lakh, who have taken education loans after April 2009, can make applications till December 31, 2010 to get their claims for refund on account of interest paid by them.

The finance minister said that earlier a person would have to pay interest from the day he/she took the education loan but later the central government gave a huge respite to the loanee and they would not have to pay the interest during the study period.