Harvest loans sanctioned as of April 1, 2014 eligible for waiver – The New Indian Express

Through Express news service

HYDERABAD: All harvest loans sanctioned or renewed as of April 1, 2014 and in progress as of December 11, 2018 are eligible for exemption.

The agriculture department on Tuesday released detailed guidelines for the agricultural loan exemption program. Finance Minister T Harish Rao has already announced in his budget speech that in fiscal year 2019-2020, crop loans of up to Rs 25,000 will be canceled.

For all other eligible farmers, the outstanding loan amount over Rs 25,000 and up to Rs 1 lakh will be canceled in four installments over subsequent years. As a result, the Agriculture Ministry issued guidelines on Tuesday.

The crop loan forgiveness amounts will be paid in checks to farmers.

“Crop loans are generally sanctioned for one year and renewed at the end of the year against payment of interest. There are hardly any new loans that rob farmers of cash flow, forcing them to buy expensive inputs on credit at very high interest rates.

The Telangana government is convinced that unless this cycle is broken with a waiver of agricultural loans, farmers will remain trapped in perpetual debt, ”said the order issued by Agriculture Secretary B Janardhan Reddy.

The Crop Loan Waiver Program will cover short-term production loans and crop loans for gold paid to state farmers by commercial banks, cooperative credit institutions (including urban cooperative banks) and regional rural banks.

The amount eligible for the waiver will be 1 lakh (principal and applicable interest) per family.

Each credit institution must also prepare a list by village of farmers who have unpaid contributions as of December 2018 with regard to harvest loans taken out against gold in rural areas only.

Gold loans granted by urban and metropolitan banks as harvest loans are not eligible for the exemption.
However, loans made by urban / metropolitan branches, which also have rural areas as service areas, are eligible for a loan waiver.

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