Farmers bankers in tizzy over lack of clarity on loan waiver cutoff date

  • | Tuesday | 11th December, 2018

Banks are concerned that as the political parties have not announced the cut-off date for the eligibility of loan waiver scheme, farmers might not repay their dues,” Ravi Kanneganti, convenor, Raitu Swarjya Vedika said. “We are already witnessing a steep fall in loan repayment across the state. Farmers are also confused as many of them are yet to get the full benefit of loan waiver,” said the manager of a bank on condition of anonymity.The general expectation is that whichever party comes to power will chose a recent date as the cut-off for outstanding loans to ensure a higher number of farmers do not become eligible beneficiaries. In some districts, officials have taken up this issue with banks, he added.With many leaders like Revanth Reddy directly asking farmers not to repay the loans, banks are worried about recovering their dues.During the campaign, many local level leaders asked farmers to seek loan renewals instead by paying little interest. The premium is in the range of 10- 25% and governments disburse 2-3% of it directly into the accounts.“In districts like Adilabad, when farmers are going to banks to withdraw their premium amounts some banks are asking them to pay their outstanding after which they will allow them to take the premium amount.

HYDERABAD: The poll promise of farm loan waiver made by major political parties in Telangana has sent farmers and bankers into a tizzy as none of the parties have given any clarity on the cut-off date for outstanding loans.Farmers are unable to withdraw the crop insurance premium being deposited in their accounts by the state and central governments as banks are insisting on the payment of their outstanding loans and interest rates first in some districts.Banks too are concerned due to the increased demand for renewal of loans from farmers in some areas.Farmers get a part of their crop insurance premium from the state and central governments depending on the crop variety around this time of this year. The premium is in the range of 10- 25% and governments disburse 2-3% of it directly into the accounts.“In districts like Adilabad, when farmers are going to banks to withdraw their premium amounts some banks are asking them to pay their outstanding after which they will allow them to take the premium amount. Banks are concerned that as the political parties have not announced the cut-off date for the eligibility of loan waiver scheme, farmers might not repay their dues,” Ravi Kanneganti, convenor, Raitu Swarjya Vedika said. In some districts, officials have taken up this issue with banks, he added.With many leaders like Revanth Reddy directly asking farmers not to repay the loans, banks are worried about recovering their dues.During the campaign, many local level leaders asked farmers to seek loan renewals instead by paying little interest. “We are already witnessing a steep fall in loan repayment across the state. Farmers are also confused as many of them are yet to get the full benefit of loan waiver,” said the manager of a bank on condition of anonymity.The general expectation is that whichever party comes to power will chose a recent date as the cut-off for outstanding loans to ensure a higher number of farmers do not become eligible beneficiaries.

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