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The Andhra Pradesh government has sought to maintain a distinction among the eligible borrowers under the farm loan waiver scheme in terms of those who have repaid the loans and those who did not, in a bid to encourage farmers to pay the banks first and seek reimbursement from the government later.
In the guidelines issued Thursday, the state government said for all those who have repaid the loan, the eligible amount would be credited to their account and they would be permitted to draw the amount as well.
Whereas in the case of those who have not repaid the loans, the amount would be released to them according to the priority given for the loans. In the said guidelines, crop loans have been given first priority followed by converted crop loans while agriculture gold loans for crop purposes have got the last priority.
This means if the loan outstandings of a borrower comprise these three kinds of loans even within the Rs 1.5- lakh cap fixed by the government, they would first receive reimbursement towards crop loans and then for the next two loans in that order. Until the loan is fully cleared either by the farmer or by the government no fresh loan will be given to the borrower.
In an interaction with mediapersons in Kurnool on Friday, chief minister N Chandrababu Naidu said if the farmers chose to repay loans without waiting for the waiver, it would be in their best interests because they would be able to access fresh loans and still remain eligible for the waiver.
“In respect of beneficiaries who had already repaid the loan, the eligible amount would be credited to the savings bank account of the beneficiary and he would be permitted to draw the amount. As regards those who had not repaid the loan, the waiver amount would be credited to the loan account of family and the outstanding balance would be reduced to that extent, as per the method mentioned in para 16(a)(b)(c)(priority of waiver according to the nature of loan outstandings),” the finance department said in the above guidelines.
The government also made it clear that the crop insurance claims of farmers will be appropriated to the government to the extent of the amount waived and balance if any, beyond the waiver limit, would be credited to farmer’s account. The government did not give any time lines as to when the loan waiver would actually be implemented.
In his Independence Day speech Naidu said he would seek the Centre’s help before moving ahead on this matter.
