Interest-free loan scheme for women, farmers suspended

NT Correspondent

Bengaluru

The interest-free loan scheme offered by the DCC Bank’s central office for the economic empowerment of women and farmers has been suspended for the past one and a half years. This suspension has sparked allegations that some microfinance lenders are exploiting the poor by charging exorbitant interest rates, using the discontinued scheme as leverage.

Complaints suggest that the local police department has remained silent on the matter. The interest-free loans provided by DCC Bank had been a lifeline for women and farmers, enabling them to finance essential activities such as purchasing livestock (cattle, sheep, goats and pigs), engaging in dairy farming, acquiring farm machinery, and undertaking home-based work. These loans also helped fund children’s education and medical treatment, significantly enhancing the quality of life for many in the community. Farmers, in particular, relied on Kisan Credit Card (KCC) loans to invest in cattle sheds, cows, and sheep, thereby establishing sustainable livelihoods.

However, the suspension of the DCC Bank loan facility has left many farmers in dire financial straits. The absence of an active management board at the DCC Bank’s central office has brought the scheme to a standstill. Consequently, women and farmers are struggling without this critical support, forcing many agricultural labourers to take up menial jobs such as bricklaying, cement work, agricultural tasks, and vegetable picking to make ends meet.