Waiver of interest on crop loans demanded

NAGPUR, May 15: The State Government should waive off interest on crop loans extended by the State Agriculture and Rural Development Bank ARDB to farmers in Vidarbha and Marathwada regions, demanded the bank8217;s chairman Baburao Tidke.

Addressing a press conference, Tidke said the State Government should concede the demand as a gesture to poor farmers badly hit by failure of crop due to unseasonal heavy rains and hail storm in winter. The bank extended loans totalling to Rs 200 crore even after the State Government failed to provide guarantee. Stating that the interest on loan extended to farmers would be about Rs 30 crore, he said the government can easily afford to write off the amount. He refuted the allegations that the bank was passing through a difficult situation. The ARDB, which functions like a service society, is a link between NABARD and farmers. As it distributes crop loans to deserving farmers only after mortgaging their property, the loan amount is most secure.