SBI floats one-time settlement scheme for tractor loans

The settlement scheme began early last month and will continue till March 31

State Bank of India (SBI) has floated a one-time settlement scheme for borrowers defaulting on loans taken to buy tractors. 

The country’s largest bank has also voiced reservations against the move to waive farm loans, saying this will affect the repayment culture in the country. 

SBI executives said the tractor loan book was part of the bank’s farm loan portfolio and the bank announced settlement schemes regularly to shed doubtful debt where the prospects of recovery were low after making adequate provisions for such dud assets. 

The settlement scheme for tractor loans began early last month and will continue till March 31. The