Maharashtra government to waive interest on farm loans taken from June last year
The Maharashtra government’s announcement is expected to add to the benefits of about 40 lakh farmers who defaulted on loans last yearmumbai Updated: Aug 24, 2017 09:10 IST
Extending the scope of the loan waiver announced in June, the state cabinet said it would waive the interest of loans defaulted on from June 30, 2016.
“The farmers who have taken loans between April 2009 and March 2016 are covered under the waiver. But, the interest accumulated on loans defaulted on after June 30, 2016 was not covered. Farmers paying instalments on loans taken in 2015 and 2016 were also not covered. By revising the scope of the waiver, we have extended the benefits to farmers. However, there is cap of Rs 1.5 lakh on benefits to each farmer,” said an official from the cooperation department.
The state government’s announcement, made on Wednesday, is expected to add to the benefits of about 40 lakh farmers who defaulted on loans last year.
The state government has been constantly revising its parameters for the loan waiver, based on the farmers’ demands and complaints.
The government has also decided to extend the benefit of the scheme to the farmers who have cleared their outstanding dues by July 31.
As a reward for their timely payment, such farmers will get 25% of the repaid amount or Rs25,000, whichever is less. Farmers with outstanding loans for allied farming activities, excluding fishing, will also get the benefits of this waiver.