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RBI allows select crop loan relief in Andhra Pradesh and Telangana

Borrowers to be given a three-year repayment window, including moratorium in the first year

BS Reporter  |  Hyderabad 

has allowed banks to extend loan restructuring facility, under which borrowers will get a three-year repayment window, to a very limited number of crop loan borrowers in and Telengana.

The informed the state governments on Friday that borrowers in about 100 mandals (local administrative units) in three districts of and 120 mandals in four districts of would get a three-year repayment window. This includes the moratorium on loan repayment in the first year.



The central bank said the facility would be available only for crop loans taken between April and October last year and only up to Rs 1 lakh per account, including the interest.

Confirming the development, Chief Secretary Rajiv Sharma said he would anyway welcome the decision of since the state government is soon coming out with its own loan waiver policy to take care of the rest of the farmers in "The followed its own criteria and confined the loan restructuring facility to only three of the nine districts we had proposed," he told Business Standard.

The government had requested the to recast crop loans in 570 mandals of the 653 mandals in the state. The government had sought rescheduled crop loans in 415 of its 475 mandals. The loan recast facility is now available to less than a quarter of all the mandals the two states had declared as hit by calamity.

Earlier, the central bank had turned down requests for crop loan restructuring in these states, claiming yield data in the affected areas did not warrant it.

Governor Raghuram Rajan earlier this week said that relief would only be provided in areas where crop yields were less than half the normal. The also refused to extend the repayment period beyond three  years despite the states wanting more time.

"It is good that at least in some areas banks will resume lending to farmers following the RBI's decision," said a senior official in the government who did not wish to be named. In the rest of the mandals, the state government  would have to take over farmers’ existing loans so that they could get new ones, he added.

The and governments have, respectively, announced waivers of Rs 19,000 crore and Rs 43,000 crore of The state governments were awaiting the RBI’s decision on delayed repayments before going ahead with their waivers.

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RBI allows select crop loan relief in Andhra Pradesh and Telangana

Borrowers to be given a three-year repayment window, including moratorium in the first year

Borrowers to be given a three-year repayment window, including moratorium in the first year has allowed banks to extend loan restructuring facility, under which borrowers will get a three-year repayment window, to a very limited number of crop loan borrowers in and Telengana.

The informed the state governments on Friday that borrowers in about 100 mandals (local administrative units) in three districts of and 120 mandals in four districts of would get a three-year repayment window. This includes the moratorium on loan repayment in the first year.

The central bank said the facility would be available only for crop loans taken between April and October last year and only up to Rs 1 lakh per account, including the interest.

Confirming the development, Chief Secretary Rajiv Sharma said he would anyway welcome the decision of since the state government is soon coming out with its own loan waiver policy to take care of the rest of the farmers in "The followed its own criteria and confined the loan restructuring facility to only three of the nine districts we had proposed," he told Business Standard.

The government had requested the to recast crop loans in 570 mandals of the 653 mandals in the state. The government had sought rescheduled crop loans in 415 of its 475 mandals. The loan recast facility is now available to less than a quarter of all the mandals the two states had declared as hit by calamity.

Earlier, the central bank had turned down requests for crop loan restructuring in these states, claiming yield data in the affected areas did not warrant it.

Governor Raghuram Rajan earlier this week said that relief would only be provided in areas where crop yields were less than half the normal. The also refused to extend the repayment period beyond three  years despite the states wanting more time.

"It is good that at least in some areas banks will resume lending to farmers following the RBI's decision," said a senior official in the government who did not wish to be named. In the rest of the mandals, the state government  would have to take over farmers’ existing loans so that they could get new ones, he added.

The and governments have, respectively, announced waivers of Rs 19,000 crore and Rs 43,000 crore of The state governments were awaiting the RBI’s decision on delayed repayments before going ahead with their waivers.
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Business Standard
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RBI allows select crop loan relief in Andhra Pradesh and Telangana

Borrowers to be given a three-year repayment window, including moratorium in the first year

has allowed banks to extend loan restructuring facility, under which borrowers will get a three-year repayment window, to a very limited number of crop loan borrowers in and Telengana.

The informed the state governments on Friday that borrowers in about 100 mandals (local administrative units) in three districts of and 120 mandals in four districts of would get a three-year repayment window. This includes the moratorium on loan repayment in the first year.

The central bank said the facility would be available only for crop loans taken between April and October last year and only up to Rs 1 lakh per account, including the interest.

Confirming the development, Chief Secretary Rajiv Sharma said he would anyway welcome the decision of since the state government is soon coming out with its own loan waiver policy to take care of the rest of the farmers in "The followed its own criteria and confined the loan restructuring facility to only three of the nine districts we had proposed," he told Business Standard.

The government had requested the to recast crop loans in 570 mandals of the 653 mandals in the state. The government had sought rescheduled crop loans in 415 of its 475 mandals. The loan recast facility is now available to less than a quarter of all the mandals the two states had declared as hit by calamity.

Earlier, the central bank had turned down requests for crop loan restructuring in these states, claiming yield data in the affected areas did not warrant it.

Governor Raghuram Rajan earlier this week said that relief would only be provided in areas where crop yields were less than half the normal. The also refused to extend the repayment period beyond three  years despite the states wanting more time.

"It is good that at least in some areas banks will resume lending to farmers following the RBI's decision," said a senior official in the government who did not wish to be named. In the rest of the mandals, the state government  would have to take over farmers’ existing loans so that they could get new ones, he added.

The and governments have, respectively, announced waivers of Rs 19,000 crore and Rs 43,000 crore of The state governments were awaiting the RBI’s decision on delayed repayments before going ahead with their waivers.

image
Business Standard
177 22