Haryana Waives Off Interest On Cooperative Bank Crop Loans

Khattar said those farmers whose bank accounts were declared non-performing assets (NPA) by these banks and were unable to renew their loans, would now be able to change the cycle of their crop loan accounts with this announcement.

Eyeing the upcoming assembly polls, Haryana Chief Minister Manohar Lal Khattar on Monday announced a waiver of interest and penalty on crop loans of Rs 4,750 crore taken from Cooperative Banks under a one-time settlement scheme. (getty images)

Chandigarh: Eyeing the upcoming assembly polls, Haryana Chief Minister Manohar Lal Khattar on Monday announced a waiver of interest and penalty on crop loans of Rs 4,750 crore taken from Cooperative Banks under a one-time settlement scheme. The decision would benefit nearly 10 lakh farmers. Khattar, who was addressing the media on 12th day of Jan Ashirwad Yatra in Bhiwani town, also announced the last date for payment of principal amount would be extended to November 30. The decision would benefit the farmers who have taken loans from the Primary Agriculture Cooperative Societies, District Central Cooperative Banks and the Haryana Land Reforms and Development Bank, he said. Khattar said those farmers whose bank accounts were declared non-performing assets (NPA) by these banks and were unable to renew their loans, would now be able to change the cycle of their crop loan accounts with this announcement. He said the farmers would have to deposit their principal amount only. This one-time relief has been provided to the farmers to dispose off their interest and penalty. According to Khattar, about 13 lakh farmers have taken loan from Primary Agriculture Cooperative Societies, out of which bank accounts of 8.25 lakh farmers have declared NPAs. He said four per cent interest on crop loans of the Primary Agriculture Cooperative Societies will be borne by the state and three per cent by the NABARD. Penalty, at the rate of five per cent, imposed on those farmers who do not repay crop loans on time, would now be completely waived off, he added.