Banks in Maharashtra start disbursing loan to farmers

The national and commercial banks across western and north Maharashtra, Vidarbha and Marathwada received large number of farmers Thursday who were provided the stated amount, according to a senior officer in the government. Debt-ridden farmers with a monthly income of up to Rs 20,000 will get the benefit.

Written by Shubhangi Khapre | Mumbai | Updated: June 23, 2017 9:11 am
farmer loans, kharid crops, crop loans, debt ridden farmers, indian express Debt-ridden farmers with a monthly income of up to Rs 20,000 will get the benefit. (Representational. Express Photo By Prashant Ravi)

All national, commercial and district central cooperative banks started the disbursement of Rs 10,000 loan to farmers Thursday to facilitate sowing of Kharif crops before June 30. In a clear departure from norms followed in the past, when banks extended loans after completing the procedure of ascertaining the eligibility of each individual farmer, they are now accepting self-declaration forms from farmers to issue the loan. Debt-ridden farmers with a monthly income of up to Rs 20,000 will get the benefit.

The national and commercial banks across western and north Maharashtra, Vidarbha and Marathwada received large number of farmers Thursday who were provided the stated amount, according to a senior officer in the government.

Highly placed sources in the government said the government had asked all banks to get a self-declaration form filled from each farmer asking for the Rs 10,000 loan. At the bankers’ meeting Wednesday, commercial and district cooperative banks were told not to worry about the new norms adopted for sanctioning the loan as the government would provide a robust mechanism to take appropriate action against farmers found misusing the rule.

The self-declaration form has been simplified so that illiterate farmers too find it easy to fill. The farmers are expected to furnish only some basic details. Availing the loan without conforming to the eligibility criteria would be considered a criminal offence.

The loan disbursement exercise will continue till July 30. Farmers’ organisations seem to be satisfied with the development. “It would be foolish to stretch the matter once the loan waiver has been declared and process of allocation started. Our protest will invite backlash from farmers whose concern is Kharif sowing,” said a senior farmer leader who was leading their agitation.

According to the government’s estimates, 70 lakh farmers of the total 1.36 crore will get the loan waiver benefits. The well-to-do farmers who had not defaulted would be provided a special incentive package in the coming months. Shiv Sena president Uddhav Thackeray, along with all elected members of the party, decided Thursday to donate a month’s salary towards farmers’ relief. Thackeray donated Rs 10 lakh. Earlier, government employees too also donated a day’s salary for farmers’ welfare.

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  1. M
    manian
    Jun 23, 2017 at 11:09 am
    How long will they be waiving loans,till the banks govt. go penniless? THis loanwaiver is a ghost hovering over the whole country.Rich farmers driving Audi cars,having buisiness interests,politicians,cine actors directors with vast benami holdings,every body stands in the Q for loan waiver.Can the nation take it?
    Reply
  2. H
    Hedonist
    Jun 23, 2017 at 9:35 am
    Only farmers having Aadhar should be given loans.
    Reply
  3. K
    Kuldeep Saxena
    Jun 23, 2017 at 9:35 am
    There is a need to rethink on Agriculture segment on one hand there has been acute water shortage for irrigation on the other there has been mass dis balance between the cost of production of agriculture produce and cost of selling i.e the cost of return for the farmers. There has been quiet a a massive mismatch between the cost of cultivation and the price realisation as there seems to be various factors like warehousing facilities, role of middle man and again the politicians had been the major constraints. The present loan waiver by various state government is going to set a trend that is not good for the nation and it may not even justyfy the beneficiaries too. For over years if we see the irrigation infrastructure there seems to be just negligible progress on the other hand there is constantly falling water levels all over the country. another problem there is likely hood of massive migration from agriculture segment to the cities.Need for serious review of the situation.
    Reply
  4. L
    l s
    Jun 23, 2017 at 6:15 am
    Loans of 10,000/- to poor farmers who sow our food, and lakhs of rupees to businessmen and politicians who only loot the nation, by not returning the loans. Shame on the finance ministry and others for all this. Also stop all bad loans by anybody, be it a farmer or businessmen. Banks have to be very strict on granting loans to anybody.If not, the bank officials should be made accountable and jailed.
    Reply