United Bank of India to launch tea credit card for tea growers

GUWAHATI: United Bank of India (UBI) is going to unveil a new loan scheme for tea growers soon, similar to what banks offer to farmers through kisan credit cards.

Chairperson and managing director Archana Bhargava said the bank is all set to make the product available for borrowers.

"Initially the bank will offer around 1000 credit cards. These cards will be known as tea credit cards," Bhargava, who was in Guwahati on Tuesday, told ET.

She said with these cards the bank will especially target small tea growers. "Rules of this card will be similar to Kisan Credit Card." Small growers contribute 30% of 1150 million kgs (mkgs) national tea production annually.

Under KCC, farmers gets loan up to Rs 50,000 at 7 per cent interest rate. They get an added discount if they pay back money in time.

UBI's exposure to tea sector is around Rs 300 crore.

The bank is also expanding its footprint in the northeast. It is planning to set up at least 500 outlets by November this year. This will include 200 ultra small branches, 200 ATMS and 100 branches.

Bhargava said the bank will hire around 500 people in clerical grade in Northeast region. UBI has 282 branches across the region.