Hyderabad: Even after the Andhra Pradesh government pays 20 per cent of the farm loans due to banks, farmers will not get fresh agricultural loans.
If they want fresh loans they have to pay their loan dues to the banks.
After the payment of the 20 per cent amount by the government, banks will renew farmers’ loans and they will become eligibile to get fresh loans.
Banks will not collect any interest from farmers for their crop loan dues till next December.
The government will pay each farmer Rs 1.5 lakh in instalments and will issue bonds too. Each bond will be worth Rs 25,000.
This means the waiver of farm loans scheme has become a farm loans reimbursement scheme.
In fact the deadline for the repayment of loans and sanctioning fresh loans ended on September 30. But as per the request of the AP government banks have extended the deadline for fresh loans. Before the deadline farmers have taken only around Rs 7,000 crore out of a total credit plan of Rs 56,000 crore.
Even though the banks insisted that farmers have to repay the loans they did not pay thinking that the government will pay their dues to the banks. Bankers now think that as the government has cleared its policy on the waiver of farm loans farmers will come forward to repay their dues to take fresh loans. As announced by
Chief Minister Naidu the farmers can encash their bonds from January 2015 by submitting them to the Farmers Empowerment Corporation.
