MUMBAI: In a uncommon determination amidst the unprecedented scenario brought on by the coronavirus pandemic and its affect on the economic system, the Maharashtra authorities has directed banks to switch the excellent crop loans to the state’s account in a bid to make farmers eligible for recent credit score.
A authorities decision (GR) dated Might 22 instructed banks to indicate the present excellent loan of farmers because the dues of the state authorities.
“This determination will clear the accounts of farmers and they’ll grow to be eligible for recent crop loan. The choice is relevant for the crop loan excellent as on April 1 this yr. The capital and curiosity on will probably be paid by the state authorities,” the order mentioned.
“It’s a very uncommon determination undertaken by the state authorities. The federal government has given its assure to some cooperative enterprises however not often it has taken the burden of farmers,” a senior official from the state cooperation division mentioned on Sunday.
The GR said that the loan waiver scheme of the federal government was being partially applied due to the coronavirus outbreak adopted by the lockdown.
“Some 60 per cent farmers have been lined below the scheme thus far. As there are not any funds with the state, some 11.12 lakh account holders are but to obtain Rs 8,100 crore,” the official mentioned.
Explaining the rationale behind issuing the GR, he mentioned the very idea behind the loan waiver was to clear the money owed of farmers.
“When NABARD will disburse loans, a lot of the farmers within the state will grow to be eligible for it (as a result of authorities’s determination),” the official mentioned.