Three methods to waive farm loans

September 09, 2014 09:46
Three methods to waive farm loans

Andhra Pradesh government will implement its election promise, farm loan waiver scheme in three ways.  These three methods could ease pressure on government as well as on farmers too. Firstly, government will waive Rupees 10,000 crores and sufficient funds will be provided from the budget. However, in AP budget, the government has allocated only Rs 5,000 crores for the  waiver of loans and the remaining funds will be gathered from the auction of red sandalwood.

The second method is, Assets reconstruction companies will take over loans and farmers will be relieved of loans. This will also make farmers to take fresh loans from banks for the new season and the  third method is, subsidy certificates will be issued to farmers who have paid the loans and in four installments, at 12 per cent interest, farmers will be paid the loan amount. With the above three methods, government can waive all the farm loans without much burden.

If Banks accept AP government's proposal of waiving farm loans then, the government is likely to waive Rs 10,000 crores in the first installment. The government wants to ease the small time farmers who took loans ranging from Rs 25,000 to Rs 50,000. AP government should be appreciated for the amount of ground work done to waive the farm loans.

(AW: Vamshi)

If you enjoyed this Post, Sign up for Newsletter

(And get daily dose of political, entertainment news straight to your inbox)

Rate This Article
(0 votes)