A Regional Rural Bank has launched a loan scheme linking rainwater harvesting with terrace gardening to promote water conservation.
Karnataka Vikas Grameena Bank (KVGB) at Dharwad offers loans up to ₹1 lakh to the interested if they take up rainwater harvesting and terrace gardening in their homes.
On the model of rainwater harvesting project, KVGB will provide loans up to ₹1 lakh, As the bank has a good customer base with long-standing relationship. The bank plans to cover 2,000 people in nine districts under its jurisdiction for this loan product. KVGB has a network of 636 branches in Dharwad, Gadag, Haveri, Vijayapura, Belagavi, Bagalkot, Uttara Kannada, Udupi and Dakshina Kannada districts.
S Ravindran, Chairman, KVGB, infromed that the idea is to conserve water and create awareness about rainwater harvesting in urban areas.
“This scheme is not just to enhance our lending. This is for a social cause,” he said.
The loans can be taken by individuals who have RCC houses in semi-urban and urban areas.
The loan is repayable over five years in 20 quarterly installments. He said the scheme is being launched ahead of the rainy season so that it would help people either recharge their openwells/borewells or store rainwater in tanks.
Asked what would happen if a beneficiary diverts the loan amount for other purposes, Ravindran further added that loans will not be released in lump sum. The bank’s manager will ensure that the money released is used for the purpose it is given.