Farmers disappointed with CM’s failure in meeting promise on loan waiver

Now, they have to meet the loan obligation at an interest of 12% from June 17

June 16, 2018 01:11 am | Updated 01:11 am IST - Mysuru

The failure of the Chief Minister H.D. Kumaraswamy to announce a loan waiver by June 15 as promised by him earlier, has left farmers disappointed. Now, they have to meet the loan obligation at an interest of 12% from June 17.

Lakhs of farmers availed interest-free crop loans of ₹3 lakhs from co-operative institutions last year. Many, who used to settle the loans within the due date in previous years, were waiting for the CM to announce the waiver this time. Now, they are on their toes to mobilise the amount to settle the loans by June 16.

According to sources in the Co-operative Societies Federation, June 16 is the deadline for farmers to repay the loan so as to enable themselves for the renewal of interest-free crop loan for the next year. If they do not repay the loan, they will be ineligible for fresh crop loans this year; the sources said, and added that an interest of 12% would be levied on the loan.

K.N. Shivalingappa, Lead Bank Manager, told The Hindu that besides 12% interest, a penalty of 2% overdue charges would be collected from farmers for not paying the amount within the due date. Interest subvention will be entertained if farmers pay the loan amount promptly within the date, he said.

Badagalapura Nagendra, general secretary, Karnataka State Rajya Raitha Sangha, told The Hindu on Friday that over 22,28,000 farmers across the State had availed the interest-free crop loans. However, the scale of finances differ, he said, and noted that farmers with a landholding of 1 or 3 acres would get ₹1.5 lakh or ₹2 lakh while those with more than 6 acres would get a loan of ₹3 lakh. The amount differs even with crops. Those growing sugarcane and paddy would get full loan amounts while for other crops the maximum of ₹3 lakh would not be sanctioned.

The total loan amount due from farmers to co-operative societies is ₹13,500 crores.

The KRRS had explained these issues to the CM at a meeting in Bengaluru a few days ago and had insisted on him waiving off the loan by June 15.

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