Good News – Telangana Govt released New Guidelines for Crop Loan Waiver scheme
Telangana state government has decided to offer relief to farmers, and so, it has come up with the Crop Loan Waiver scheme. It will be applicable for different crop loans except sanctioned or renewed on 1st April 2014 or after that, and it is outstanding on 1st December 2018. The scheme would include crop loans and short term loans and rupees 1 lakhs will be offered to the farmers. For the scheme, the state government will be assisted by commercial banks, urban cooperative banks, and ruralregional banks, including cooperative credit institutions.
Telangana Chief Minister K Chandrashekhar Rao is initiating the scheme launch by waiving up to rupees 25000. Other than this, the loan amount ranging from rupees 25000 with an upper limit of rupees 1 lakh will be waived off for the farmers in the second phase. It is further notified that the amount will be waived off in four installments to be given over four years.
Due to the implementation of the scheme, the state government has allotted rupees 1198 crores in the 2020-2021 budgets. With the allotted budget, it shall help waive off farmer’s loan for outstanding loan amount below rupees 25000. However, by this almost 5.83 lakh farmers can enjoy the scheme benefits.For the ones that are above rupees 25000 up to rupees 1 lakhs with the requirement of about rupees 24, 738 crores for each farmer’s family, the state government has offered rupees 6225 in the budget for offering the money to the farmers as per the first installment of the scheme. The amount will be given to individual families through cheques and assistance from local legislators.
For the collection of information of the farmers, processing the beneficiary amount, and the like task, an IT portal will be launched. This has been proposed by Agriculture Secretary B Janardhan Reddy of Telangana. Through the portal, it shall help to calculate the final loan amount to be waived off by the state government for the farmers. This apart, the banks will make a village-wise list of beneficiary farmers with the loan amount in a certain format. The list should be scrutinized by the higher authorities before the benefits are offered to the farmers. However, to finalize the list of farmers who are eligible to avail scheme benefits, district-level bank committee meetings shall be held. It shall also decide about offering cheques to the eligible farmers.
This apart, the monitoring system will come up at the district, mandal and state level, where representatives will be disposed after 30 days by the authorities and it shall help to inform the eligible candidates.
As per scheme rules, members including farmer’s family head, children and spouse will be included in the benefit of rupees 1 lakh. It will include all bank loans in the name of the farmer. In addition, the landholding of the farmer should also be taken into consideration. However, to calculate waiver amount, both principal and interest amount would be taken into consideration. Previously, the waiver scheme has been promised by Telangana Rashtra Samithi. It should be known that the loan waiving amount up to rupees 1 lakh should not include charges like legal charges, inspection charges, processing charges, insurance and the like overhead charges.
However, 5, 83,916 number of farmer beneficiaries will be helped to waive off loan up to rupees 25000 in the first phase as stated in the scheme guidelines. Even, for any hypothecation of products, written-off loans and other loans, it will be restructured for the help of the farmer. For the ones with a loan amount of rupees 2500 to rupees 1 lakh should be benefitted in the second in four installments.
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