You are here: Home » Opinion » Letters
Business Standard

Focus on timely repayment

Huge pile-up of non-performing assets in banks is an acute problem

Business Standard 

Abheek Barua’s article, “How waivers can hurt” (July 27), raises an important issue at a time when Prime Minister is dreaming of doubling farmers’ income.

Huge pile-up of in is an acute problem and the announcement of loan waiver schemes will mitigate it. Credit is indispensable for farmers because there is a wide gap between their duration of earning and spending. Due to several reasons, farmers are not able to repay loans, which is essential for smooth functioning of the credit cycle. The 2011 agriculture census revealed that close to 22.1million of farmers remained dependent on non-institutional sources of credit. This is a matter of great concern. Besides issues such as provision of credit at affordable rates, timely and assured fair price for crops and crop insurance, repayment of credit on time is a challenge.

Instead of implementing loan waiver schemes, steps need to be taken to ensure that farmers are able to repay loans on time. That would be a more fruitful result.

Suman Gill   Hisar


can be mailed, faxed or e-mailed to: 
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg 
New Delhi 110 002 
Fax: (011) 23720201  ·  E-mail: letters@bsmail.in
All must have a postal address and telephone number

RECOMMENDED FOR YOU