Karnataka MP Appeals For Extending Loan Repayment Period, Reduction Of Interest For Cashew Industry

Kundapura, Aug 11 (KNN) Karnataka MP B.Y. Raghavendra in a letter to the Finance Minister Nirmala Sitaraman appealed for an extension of the loan repayment period and reduction of interest for the cashewnut industry of coastal Karnataka.

The Shivamogga MP met the union minister in New Delhi on Thursday and submitted an appeal. He drew the attention of the minister towards the two EMI loads faced by the industry.

In the letter submitted to the finance minister, Raghavendra pointed out that since the outbreak of Covid-19 pandemic, the units are facing problems in repaying loans. 

The import of low quality raw cashewnut has also put the industry in further trouble.

“The repayment of working capital term loan should be suspended for at least 18 months. The repayment period and the guaranteed emergency credit line should be extended till the end of repayment of EMIs,” he said.

Raghavendra added that since the cashew industry is already facing a financial crisis, the rate of interest on working capital should be reduced.

At present, Karnataka’s cashewnut industry provides employment to more than 1.5 lac people in the rural areas of the state.  (KNN Bureau)