HYDERABAD: All crop loans sanctioned or renewed on or after April 1, 2014 and excellent as on December 11, 2018 are eligible for waiver.
The agriculture division on Tuesday launched detailed pointers for crop mortgage waiver scheme. Finance Minister T Harish Rao has already introduced in his Price range speech that in 2019-20 Price range 12 months, crop loans as much as Rs 25,000 could be waived.
For all different eligible farmers, the excellent mortgage quantity above Rs 25,000 and as much as Rs 1 lakh will likely be waived off in 4 instalments within the subsequent years. Accordingly, the agriculture division issued pointers on Tuesday.
The crop mortgage waiver quantities will likely be paid in cheques to the farmers.
“Crop loans are normally sanctioned for one 12 months and rolled over on the finish of the 12 months on cost of curiosity. There are hardly a number of recent loans leading to deprivation of money influx to farmers, thus forcing them to buy excessive price inputs on credit score at a really excessive rates of interest.
The Telangana authorities is satisfied that except this cycle is damaged with crop mortgage waiver, farmers will stay trapped in perpetual indebtedness,” the order issued by agriculture secretary B Janardhan Reddy stated.
The crop mortgage waiver scheme will cowl quick time period manufacturing loans and crop loans in opposition to gold disbursed to farmers within the State by business banks, cooperative credit score establishments (together with city cooperative banks) and regional rural banks.
The quantity eligible for waiver will likely be as much as `1 lakh (principal along with relevant curiosity) per household.
Every lending establishment, shall additionally put together a village-wise record of farmers who’ve excellent dues as on Dec 2018 in respect of crop loans taken in opposition to gold in rural areas solely.
Gold loans availed from city and metropolitan banks as crop loans shall not be eligible for waiver.
Nonetheless, loans availed from the city/metropolitan branches, which have rural areas additionally as their service areas are eligible for mortgage waiver.