BENGALURU: The state government has declared a 12-month moratorium on repayments of Kisan Credit Card (KCC) loans, agricultural loans and loans related to dairy farming, sericulture, fisheries and other allied agricultural activities in drought-hit taluks.
The repayment period will be extended to 36 months in moderately drought-hit taluks and 60 months in severely drought-hit taluks.
The decision was taken at a meeting of the State Level Bankers’ Committee (SLBC) chaired by Chief Secretary on Wednesday.
The government has declared 101 taluks in 24 districts as drought-hit and out of these, 89 are severely drought-hit and 12 moderately drought-hit.
“In addition to postponing repayment of existing loans, banks will provide fresh loans, subject to their rules and regulations, to meet the urgent financial requirements of farmers,” a press release from the state government said. It said if the government declares additional taluks as drought-hit in future, the relief framework will automatically apply without requiring a separate SLBC meeting.
The Chief Secretary said that the issue of extending repayment periods for loans availed from cooperative banks would be discussed with National Bank for Agriculture and Rural Development (NABARD) and the state government and an appropriate relief package would be worked out shortly.
According to the release, the relief package is to be implemented by October 11, 2026, within 45 days of the drought declaration. Banks have been directed to complete the entire relief process by January 9, 2027, within 135 days. Canara Bank, the SLBC convener bank, will upload the final proceedings of the SLBC meeting on the concerned portals by September 26.
A strict zero-tolerance policy against forced recovery from farmers has been put in place for this year. District administrations have been instructed to immediately respond to complaints from farmers and contact the concerned banks before any recovery process is undertaken.
Deputy Commissioners, Chief Executive Officers and Lead District Managers along with officials from the Agriculture, Horticulture, Animal Husbandry and Disaster Management departments shall conduct video conferences to ensure that information about the relief measures reaches farmers directly.