Financial Assistance for strengthening of primary Agriculture Cooperative Credit Societies (PACS) –

Term Cooperative Credit Structure (STCCS)
According to the Government Resolutions dated 06/09/2014 and 16/11/2021, to compensate for the losses of Primary Agricultural Credit Societies (PACS) in the state, financial assistance is granted under the government scheme based on the amount of crop loans distributed by these institutions in each financial year. The assistance is sanctioned as PACS that have disbursed up to ₹25 lakhs in crop loans receive 2% assistance, Those that have disbursed between ₹25 lakhs and ₹50 lakhs receive 1.5%,Those that have disbursed between ₹50 lakhs and ₹1 crore receive 1%, PACS disbursing more than ₹1 crore receive 0.75%. The maximum limit for financial assistance is ₹1.50 lakhs per institution.

Eligibility criteria for these institutions primarily include Completion of statutory audit, Conduct of the annual general meeting within the prescribed timeframe, For institutions with crop loan disbursement up to ₹50 lakhs, the management and establishment expenses must not exceed 2.5% of the working capital, For institutions with disbursement above ₹50 lakhs, the said expenses must not exceed 2% of the working capital, The institution must not be involved in fraud or misappropriation, The crop loan recovery rate should be more than 50%.

Under this scheme, an amount of Rs. 20.99 crore has been disbursed as financial assistance for empowerment to 10411 Primary Cooperative Agricultural Credit Cooperative Societies in the year 2024-25.

Beneficiary:

The beneficiaries are Primary Agriculture Credit Societies, helping them sustain their operations.

Benefits:

This scheme provides financial assistance to Primary Agriculture Credit Societies to compensate for their losses based on crop loan disbursal in a given financial year.