A recent press report said that State Bank of Hyderabad (SBH) has entered into a memorandum of understanding with Heritage Foods India Ltd to extend dairy loans.
Ms. Renu Challu, Managing Director, SBH, told the press that the objective of the MoU is to help the poor by providing investment credit in agriculture. She said that a maximum of Rs 5 lakh will be offered as loan with a subsidy of 1.25 lakh from National Bank for Agriculture and Rural Development.
Mr Sambasiva Rao, President, Heritage Foods, said the company has planned to identify the eligible beneficiaries and also help SBH in revering the loans. He said that the farmers and others who are given loans to buy and raise cattle will also be supported by the company and by guaranteed buy-back of milk. He also said that the collaboration would give an assured supply of milk to the company.
Reports said that the bank SBH was expecting to generate a business of Rs 50-100 crore out of dairy loans which would fall under priority sector advances.
State Bank of Hyderabad has included the dairy loans in its loan portfolio along with the other loans namely home loan, personal loan, educational loan, agricultural loan, mortgagee loans etc