Telangana: Guidelines for crop loan waiver released

The scheme will be applicable for short-term production loans and crop loans against gold amounting upto Rs 1 lakh disbursed to farmers in the State by commercial banks, cooperative credit institutions including urban cooperative banks and regional rural banks.

By Author  |  Published: 17th Mar 2020  7:44 pmUpdated: 18th Mar 2020  1:09 am
crop loan waiver
Representational image

Hyderabad: In a major relief to farmers, the State government on Tuesday issued guidelines for Crop Loan Waiver-2018 scheme which will be applicable for all crop loans sanctioned or renewed on or after April 1, 2014 and outstanding as on December 11, 2018. The scheme will be applicable for short-term production loans and crop loans against gold amounting upto Rs 1 lakh disbursed to farmers in the State by commercial banks, cooperative credit institutions including urban cooperative banks and regional rural banks.

As announced by Chief Minister K Chandrashekhar Rao in the State Assembly to fulfill his electoral promise, the crop loans upto Rs 25,000 will be waived off in the first phase. For all other eligible farmers, the outstanding loan amount above Rs 25,000 and upto Rs 1 lakh will be waived off in four installments over a period of next four years.

The State government had recently allotted Rs 1,198 crore in its 2020-21 budget for the scheme, which will be released to waive off outstanding crop loans of below Rs 25,000 belonging to 5.83 lakh farmers at one go. While the loans above Rs 25,000 and upto Rs 1 lakh per farmer’s family requires about Rs 24,738 crore, the State government had earmarked Rs 6,225 crore in the budget under the scheme towards first installment. The amount would be distributed to each farmer individually through cheques by their respective local legislators.

In the orders issued on Tuesday, Agriculture Secretary B Janardhan Reddy stated that an IT portal will be developed for collection, processing of the data and finalisation of beneficiaries’ outstanding and eligible loan amounts for extending the benefit. Later, the banks will prepare a village-wise list of farmers with outstanding loan amounts in a prescribed format and submit the report to the authorities concerned. A district level bankers committee meeting will be held before finalising the eligible list of farmers and commencing distribution of cheques to eligible farmers.

Further, a monitoring and grievance redressal system will be established at mandal, district and State lvels in the portal where every representation will be disposed off withing 30 days by the authorities concerned after informing the applicant.


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