It is expected to benefit about 3.1 lakh farmer having loan account in about 1239 branches of the bank spread across the country.
" About Rs 700 crore loan will be waived through the Uco Bank .The bank will waive this loan and later submit the claim to the Union government", B M Mittal, executive director, Uco Bank said.
Mittal who was here to interact with the farmers of Kaimatia (under Janla branch) and Tangiapada under (Paikatigiria) about the implementation of the loan waiver scheme told the media persons that about 4.3 crore farmers having loans accounts in the country will benefit from the scheme.
The actual benefit to the farmers will be more than Rs 700 crore as the commercial banks in their normal course of business adopt internal write offs when a particular asset becomes non-performing.
He said, the scheme will be applicable to the small and marginal farmers having upto 5 acres of land and other farmers.
While loans incurred by the small and marginal farmers between March 1997 and March 2007 will be totally waived, the other farmers can avail the debt relief under the One Time Settlement (OTS).
However, the other farmers will have to repay 3/4th of the overdues in three installments by March 2009 to avail 25 percent relief in the overdue amount.
The first and the second installment will not be less than 1/3 of the total overdues. The scheme is likely to cost Rs 71,680 crore to the government exchequer.
"The main idea behind the scheme is to bring back the people to the banking system who have gone out of it due to failure in repayment", he added.
