Andhra Pradesh

AP announces guidelines for loan waiver

DWCRA groups to be strengthened by infusing fresh capital. In its orders issued on Thursday, the government said crop loans and agricultural gold loans disbursed for crop purposes only including the loans converted to medium term loans due to calamities as on March 31, 2013 and outstanding (including interest) as on March 31, 2014 were eligible for coverage under the scheme.

Ending days of suspense, the Andhra Pradesh government has finally announced the operational guidelines for waiver of agriculture crop loans and gold loans availed for agricultural purposes together not exceeding Rs. 1.5 lakh per family.

The government will, simultaneously, infuse fresh capital not exceeding Rs.1 lakh to each DWCRA group in order to financially strengthen them. The government has issued detailed orders (GO Ms 174) pertaining to the guidelines that should be followed by the implementing agencies announcing that farmers whose crop loans were waived under the scheme would be eligible for fresh finance from the lending institutions provided the amount waived was equal to the loan outstanding.

Accordingly, the scheme would be applicable to crop loans (including gold loans sanctioned for raising crops) extended by scheduled commercial banks, regional rural banks and cooperative banks (other than urban cooperatives) through their branches in all the 13 districts of the State. The primary agriculture cooperative credit societies and farmers’ service cooperative societies which are accredited to lending institutions for advancing direct agriculture crop loans to agricultural families are also covered under the scheme.

In its orders issued on Thursday, the government said crop loans and agricultural gold loans disbursed for crop purposes only including the loans converted to medium term loans due to calamities as on March 31, 2013 and outstanding (including interest) as on March 31, 2014 were eligible for coverage under the scheme. Loans which were outstanding as on March 31 this year would be eligible for waiver even if they were subsequently repaid to the bank/cooperative.

Short term loans sanctioned for meeting working capital needs of horticulture activity, allied activities like fisheries, poultry, dairy as also agricultural produce (pledge) loans, including loans against warehouse receipts, working capital to activities related to indirect finance like fertilizers have, however, been excluded from the scheme.

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Printable version | May 31, 2020 4:06:37 PM | https://www.thehindu.com/news/national/andhra-pradesh/article11200422.ece

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