Ahead of Assembly polls, Haryana govt waives Rs 4,750-cr interest, penalty on crop loans

Ahead of assembly polls, the BJP-led Haryana government on Monday announced Rs 4,750-crore interest and penalty waiver on crop loans taken from cooperative banks.

Press Trust of India September 02, 2019 16:39:53 IST
Ahead of Assembly polls, Haryana govt waives Rs 4,750-cr interest, penalty on crop loans
  • Ahead of assembly polls, the BJP-led Haryana government on Monday announced Rs 4,750-crore interest and penalty waiver on crop loans taken from cooperative banks

  • This announcement was made by Chief Minister Manohar Lal Khattar in Haryana's Bhiwani district

  • The chief minister further said a benefit of Rs 1,800 crore will be given to borrowers of DCCB if they pay principal amount along with simple interest by 30 November.

Chandigarh: Ahead of assembly polls, the BJP-led Haryana government on Monday announced Rs 4,750-crore interest and penalty waiver on crop loans taken from cooperative banks, thus benefiting around 10 lakh farmers in the state.

Ahead of Assembly polls Haryana govt waives Rs 4750cr interest penalty on crop loans

File image of Haryana chief minister Manohar Lal Khattar. PTI

This announcement was made by Chief Minister Manohar Lal Khattar in Haryana's Bhiwani district.

"A total benefit of Rs 4,750 crore will be given to farmers. And this amount may go up by Rs 100 crore to Rs 200 crore as the exact calculation is to be worked out. We have given a package of roughly Rs 5,000 crore to farmers," Khattar said.

He said that with this move, around 10 lakh farmers, who had borrowed from Primary Agriculture Cooperative Societies (PACS), District Cooperative Central Banks (DCCB) and Land Mortgage Bank (LMB), would be benefitted.

He informed that out of 13 lakh farmers, who had borrowed from PACS, accounts of 8.25 lakh farmers had turned Non-Performing Assets (NPAs).

Khattar informed that 5 per cent penalty, which was imposed on farmers who failed to repay loans taken from PACS, will now be completely waived.

"It will give a benefit of Rs 2,500 crore to borrowers of PACS," said Khattar.

The chief minister further said a benefit of Rs 1,800 crore will be given to borrowers of DCCB if they pay principal amount along with simple interest by 30 November 30.

"Around 85,000 farmers had taken loans worth Rs 3,000 crore from DCCB. Out of which, accounts of 32,000 farmers involving an amount of Rs 800 crore have turned NPAs," said Khattar.

Khattar said that farmers would pay 2 per cent interest for loans less than Rs 5 lakh, 5 per cent for loan between Rs 5 lakh to Rs 10 lakh and 10 per cent interest on loans in excess of Rs 10 lakh. "It will give a benefit of Rs 1,800 crore to farmers," he said.

In case of loan from LMB, Khattar said that out of total 1.10 lakh borrowers, accounts of 70,000 had been declared NPAs.

Out of their total outstanding payment, Rs 750 crore was principal amount and Rs 1,400 crore as interest and penalty, he said.

"Their penal interest would be waived. Farmers will have to pay 50 per cent of simple interest and rest will be borne by the state government. It will give a benefit of Rs 450 core to farmers, he said.

 

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