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

The BJP-led Haryana government on Monday announced a Rs 4,750-crore waiver on interest and penalty on crop loans from cooperative banks, benefiting about 10 lakh farmers just before the assembly elections in the state. "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," Chief Minister Manohar Lal Khattar said here at a rally.

"We have given a package of roughly Rs 5,000 crore to the farmers," he said, as the party's "Jan Ashirwad Yatra" entered its 12th day. The farmers who have borrowed from Primary Agriculture Cooperative Societies (PACS), District Cooperative Central Banks (DCCB), Land Mortgage Bank (LMB) and Haryana Land Reforms and Development Bank will benefit.

The farmers whose bank accounts were declared Non Performing Assets (NPAs) by these banks and were unable to renew their loans will now be able to do so, according to the announcement. He said out of 13 lakh farmers who borrowed from PACS, the accounts of 8.25 lakh had turned into NPAs.

Khattar said the five per cent penalty imposed on farmers who failed to repay loans taken from PACS will now be completely waived. The farmers who borrowed from PACS will benefit by about Rs 2,500 crore with this decision, he said.

The DCCB borrowers will gain by Rs 1,800 crore if they pay the principal amount along with simple interest by November 30, the extended deadline. "Around 85,000 farmers had taken loans worth Rs 3,000 crore from the DCCB. Out of which, accounts of 32,000 farmers involving an amount of Rs 800 crore have turned NPAs," Khattar said.

He said farmers will pay two per cent interest for loans less than Rs 5 lakh, five per cent for loans between Rs 5 lakh to Rs 10 lakh and 10 per cent for bigger loans. "It will give a benefit of Rs 1,800 crore to the farmers," he said. In case of loans from LMB, Khattar said 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 the principal amount and Rs 1,400 crore interest and penalty, he said. "Their penal interest would be waived. Farmers will have to pay 50 per cent of the simple interest and the rest will be borne by the state government. It will give a benefit of Rs 450 core to the farmers," he said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)