Farmers should get crop loan of Rs 10,000 from today: CM Fadnavis

The CM said his letter was addressed to RBI Governor Urjit Patel, who had in-principle given his consent. It was also indicated that all banks would be officially instructed in a day or two.

Written by Shubhangi Khapre | Mumbai | Published:June 22, 2017 4:44 am
farm loan waiver, crop loan, maharashtra farmers, devendra fadnavis, indian express Maharashtra Chief Minister Devendra Fadnavis. (Files)

Chief Minister Devendra Fadnavis Wednesday urged national, commercial and district central cooperative banks to start disbursement of Rs 10,000 crop loan to all debt-ridden farmers from Thursday. At the state-level bankers’ meet in Mumbai, Fadnavis said he had written to the Reserve Bank of India Monday, conveying the state’s decision to provide Rs 10,000 to farmers and requesting it to help expedite the process by instructing the banks.

The CM said his letter was addressed to RBI Governor Urjit Patel, who had in-principle given his consent. It was also indicated that all banks would be officially instructed in a day or two.

“The amount of Rs 10,000 should be credited to the bank accounts of all farmers who have taken crop loan in the past. It includes all debt-ridden farmers,” said Fadnavis. The amount aims to help farmers begin the sowing for the Kharaif season. The loan will be extend to more than 70 lakh farmers across the distressed Marathwada, Vidarbha and parts of north and western Maharashtra.

Stating that there should be no delay in the disbursement process, Fadnavis said: “The urgency with which the policy decision was taken should also reflect in its implementation. Otherwise, the stated objective to provide immediate relief to the needy and poor farmers would be defeated.”

When the national and commercial banks asked as to how would they extend Rs 10,000 to farmers whose debt had not been cleared, and how would the farmers go about the repayment, the CM said the allocation of loan would not be a big burden for the banks according to government estimates. “The state will ensure the amount with interest is repaid to the banks within the time limit,” he said, asking the financial institutions not to be worried as the government had decided to become the guarantor here.

“Maharashtra is a big state and mobilisation of resources to repay the loans disbursed by banks would be addressed without any delay,” said Fadnavis.

Apart from the decision to give this loan, the government has announced waiver of outstanding loans up to Rs 1 lakh.
In the last one week, the state government has thrice modified the eligibility parameters to make a larger segment of farmers avail the farm loan. All farmers with a monthly income of Rs 20,000, including those owning tractors, can now avail the loan.

Representatives from the RBI, SBI, DCCBs, and commercial banks, besides senior ministers and officials of the state government, were present at the bankers’ meeting.

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