The Hindu Business Line : TN Govt announces one-time settlement scheme for co-op loan overdues

In a statement in the Assembly on Wednesday, the Chief Minister, Ms Jayalalithaa, said that under the one-time settlement small and marginal farmers whose loans have been declared non-performing assets (NPA) as on March 31, 2003, may pay the principal and interest to get a waiver of penalty interest up to March 31, 2003, and waiver of interest, penal interest and interest on overdues from April 1, 2001.

This will benefit 1.78 lakh farmers who will receive concessions amounting to Rs 145.90 crore.

Farmers whose long term farm sector loans have been declared NPA as on March 31, 2001, can pay the principal and interest as on that date and 50 per cent of the interest due from April 1, 2001, to obtain a waiver of penal interest due as on March 31, 2001 and 50 per cent waiver of interest on overdues from April 1, 2001.

This offer will benefit 57,430 farmers who will receive concessions of Rs 92.12 crore.

Those who availed themselves of non-farm sector loans which have been declared NPA as on March 31, 2003, could pay the principal and interest as on that date to get a waiver of penal interest as on that date and interest on overdues and penal interest accumulated subsequently.

This scheme will benefit 17,990 farmers who will receive interest concessions totalling Rs 42.28 crore.

Farmers opting for these schemes can pay the dues either in a single tranche or pay 25 per cent of the dues within three months and the balance within six months with interest.

To partly compensate the loss to cooperative banks due to these concessions the State Government will sanction the Tamil Nadu Cooperative State Agriculture and Rural Development Bank Rs 15 crore, she said.

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TN Govt announces one-time settlement scheme for co-op loan overdues