Crop loans to be rescheduled in Telangana too
HYDERABAD: Crop loans will not be waived but will be rescheduled in Telangana state. This development came as the State government officials are set to furnish the details of rescheduling of loans to the Reserve Bank of India.
'A letter in this regard will be sent to the RBI within three days,' officials in the finance department revealed. When the government repays the loans on behalf of farmers, it would reflect in their passbooks. Till such time, `1 lakh loan will be shown as dues in the passbooks of farmers.
The officials confirmed that the passbooks of farmers would still show that they owe Rs 1 lakh to bankers even after rescheduling of the loans.
As per the RBI norms, the crop loans could be rescheduled for a minimum period of two years to a maximum period of ten years when the crops suffer damage in natural calamities like floods and drought.
A list of the mandals hit by lack of rains would be submitted to the RBI. 'The RBI will decide on the tenure of the rescheduling of the loans depending upon the intensity of the natural calamity,' an official said.
During the reschedule period, an interest of 10 per cent will be levied. As the state government has assured to waive crop loans up to Rs 1 lakh, the interest component would be borne by it. However, long-term loans and gold loans may not be covered under the rescheduling of the loans.
News Posted: 10 July, 2014
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