Kochi: Union Bank of India has launched an innovative scheme called 'Union white card' to provide trouble-free credit to dairy sector and help create self-employment for up to 60,000 in the current year.

After the launch of the pilot project in Mala, Thrissur district, Kerala, K Cherian Varghese, chairman and managing director, Union Bank of India, said the bank plans to distribute 30,000 'white cards' in various parts of the country.

The scheme provides loans up to Rs 5 lakh at interest rates between 8.5 per cent and10 per cent, for the purchase of milch cattle, utensils, machines, fodder construction of cattle sheds, transportation of milk and veterinary services, etc, The repayment, which will be out of sale of milk proceeds deducted at source, is up to seven years.

The bank has plans to tie up with dairies, milk unions, milk federations, milk processing units and chilling plants for promoting the scheme, Cherian Varghese said. For the pilot project at Mala, it has tied up with a local dairy firm Milgram which will buy the entire milk from the dairy farmers.