If farmers have overdue interests above Rs 1 lakh in cooperative banks, repayment of the same before July 31, 2019, will make them eligible for a farm loan waiver up to Rs 1 lakh.
BENGALURU: With the farm loan waiver costing much less than initial estimates and banks seeking an extension for repayment of interests and dues, the state government has taken measures to make more farmers eligible to avail of waiver under the grand scheme, specifically in the cooperative sector.
In an order dated July 15, 2019, the government has extended the deadline for repayment of interests and dues for existing and overdue short-term loans availed by farmers till July 10, 2018, by 20 days.
If farmers have overdue interests above Rs 1 lakh in cooperative banks, repayment of the same before July 31, 2019, will make them eligible for a farm loan waiver of up to Rs 1 lakh.
“Cooperative societies are requested to issue notifications to farmers and create awareness about the extension of repayment dates. DCC banks are requested to give wide publicity,” the letter stated. The move comes with a clear intent of reaching out to more farmers who could become eligible.
According to the regulations laid out by the government to avail loans in the cooperative sector, farmers are required to repay interests for existing loans to become eligible.
With an extension on the deadline for repayment, more farmers are expected to become eligible after repaying interests and liabilities.
source: Newindianexpress
Link:https://www.newindianexpress.com/states/karnataka/2019/jul/17/karnataka-government-extends-deadline-to-repay-farm-loan-dues-2005039.html
