Kumaraswamy expands loan waiver net

July 13, 2018 12:00 am | Updated 04:57 am IST - Bengaluru

45 lakh farmers to benefit from scheme

In a decision that would bring more farmers into the crop loan waiver net, Chief Minister H.D. Kumaraswamy on Thursday announced an expanded version of the earlier scheme announced in the budget.

Now, all crop loans up to Rs. 1 lakh taken till July 10, 2018, from cooperative institutions will be eligible for waiver.

The announcement of the revised loan waiver is expected to benefit 45 lakh farmers and cost the exchequer an additional Rs. 10,700 crore, Mr. Kumaraswamy said. In the earlier proposal, crop loan up to Rs. 2 lakh that was overdue and taken between April 1, 2009 and December 31, 2017 was covered. The Chief Minister also announced that the government would give interest-free bonds to take over dues in nationalised banks, and the payment would be made over a period of four years. “The final modalities will be worked out with the bankers before July 20,” he added.

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