Polls ahead, Khattar Govt waives ₹4750 Cr of interest and penalty on crop loans

Ahead of Assembly polls, the BJP-led Haryana government on Monday announced ₹4,750 crore interest and penalty waiver on crop loans from co-operative banks. It will benefit around 10 lakh farmers in the state.

"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 exact calculation is to be worked out. We have given a package of roughly ₹5,000 crore to farmers," The Chief Minister of Haryana Mr Manohar Lal Khattar announced in Bhiwani district.

He said that with this move, around 10 lakh farmers — who had borrowed from the Primary Agriculture Cooperative Societies (PACS), District Co-operative Central Banks (DCCB) and Land Mortgage Bank (LMB) — would be benefited.

He said that out of 13 lakh farmers, who had borrowed from the PACS, as many as 8.25 lakh farmer’s accounts had turned non-performing assets (NPAs).

The Chief Minister said that the five per cent penalty earlier imposed on farmers who failed to repay loans taken from the PACS will now be completely waived, which, would benefit borrowers of the PACS amounting to ₹2,500 crore said.

The Chief Minister said that a benefit of ₹1,800 crore will be given to borrowers of DCCB only if they pay principal amount along with simple interest by November 30. For loans taken by farmers less than ₹ five lakh, two per cent interest, loans between ₹ five lakh to ₹10 lakh five per cent and loans exceeding ₹10 lakh,10 per cent interest would be charged.

"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.

In case of 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 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 benefit them of Rs 450 core,” he added.