Commercial banks have revised the norms on rescheduling repayment of crop loan following a directive by the Reserve Bank of India.
This will benefit thousands of farmers in the district reeling under drought and crop failure and will give them breathing space before their repayment tenure commences.
Earlier, the crop loans were rescheduled and repayments could be deferred only if there was a 50 per cent crop failure. But the revised RBI guidelines stipulate that loans can be rescheduled even in case of crop failure ranging from 33 per cent to 50 per cent, said K.N. Shivalingaiah, District Lead Bank Manager, State Bank of Mysore.
He told The Hindu that in case of crop failure between 33 per cent to 50 per cent, farmers can defer the repayment by one year. In case the crop failure was above 50 per cent the loan can be rescheduled so as to let the farmers defer repayment by two to five years.
He said more than 85 per cent of farmers in the district have availed loans from either commercial banks in the public sector or cooperative banks and the total advances made to farmers till the end of July in Mysuru district was Rs. 972 crore. “The lending process intensifies post-July and the figures for loan outgo was being complied for the September quarter,” he added.
Almost 50 per cent of the advances have been availed by tobacco cultivators in Hunsur-Periyapatna belt. apart from cotton cultivators in H.D. Kote and sugarcane growers in the T. Narsipur belt.
Advances have also been extended to turmeric and ginger cultivators but they constitute a small percentage. There are not many takers for crop loan for paddy as amount lent for it is low and is based on the cost of cultivation, said Mr .Shivalingaiah.
A meeting of bankers, farmers and officials was convened by Deputy Commissioner C. Shikha during the week and banks were instructed to form a uniform policy about documentations required for crop loans, as there were complaints that it varied from bank to bank.
