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

PTI | Updated on September 02, 2019 Published on September 02, 2019

Haryana Chief Minister Manohar Lal Khattar

To benefit around 10 lakh farmers who borrowed form cooperative banks, societies

Chandigarh, Sept 2 Ahead of assembly polls, the BJP-led Haryana government on Monday announced ₹4,750-crore interest and penalty waiver on crop loans taken from cooperative banks, thus benefiting around 10 lakh farmers in the state.

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

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

Non-performing assets

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 ₹2,500 crore to borrowers of PACS,” said Khattar.

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

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

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

In case of a 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, ₹750 crore was the principal amount and ₹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 ₹450 core to farmers, he said.

Published on September 02, 2019
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