Order on farm loan waiver issued
BENGALURU: The state government issued the order on loan waiver on Saturday in a bid to avoid criticism about delay. Though other states like Uttar Pradesh, Punjab and Maharashtra have also announced loan waivers, none of the states have issued orders to that effect as they are still working out the details.
Chief Minister Siddaramaiah, who announced the waiver on Wednesday during the Assembly and Council proceedings, made sure the order was issued immediately to avoid any delays.
The waiver of amount up to Rs 50,000 is applicable to farmers who have taken short-term loans from state cooperative banks and who have outstanding amounts as on June 20, 2017.
The waiver is not applicable to mid-term and long-term loans, non-agriculture loans and Pashu Bhagya loans. According to the order, farmers who have repaid more than Rs 50,000 towards the principal on their loans which expires on or before June 20, 2018 will also be eligible for a waiver.
Farmers who have defaulted on their loans and whose amount exceeds Rs 50,000 including interest and principal can also get a waiver on Rs 50,000 including interest and principal, if they pay back the loan before December 31, 2017. The waivers for all farmers eligible for the loan waiver will come into effect on the day of the date of payment of their loans. Farmers who get a waiver will also not be eligible for new loans until the loan deadline date has passed.