Andhra Bank offers 25% debt relief to farmers

More than two years after the Centre announced the debt relief scheme (DRS) for the farmers, Andhra Bank has announced its own debt relief scheme for the small and marginal farmers who are covered under the Government of India scheme.

The Hyderabad-based public sector bank will provide 25 per cent more debt relief on overdue amount of the agriculture loans for the farmers, who are coming under the DRS announced by the Central government. This one time settlement scheme is open till May 31 this year.

As per the DRS announced by the Central government in 2008, the farmers having five acres of land or more are entitled to a debt relief of 25 per cent of overdue amount of the agriculture loan. The scheme was extended to June 30, 2010.

“With the new debt relief scheme of the Andhra Bank, the farmers are now getting 50 per cent of debt relief of their overdue as on December 2007 with OTS”, zonal manager (Berhampur) of Andhra Bank, T Venkaiah said here on Wednesday.

‘'Due to tough climatic conditions and poor monsoons, farmers are facing a tough situation and their economic stability has been severely affected. Keeping this in view, Andhra Bank has announced additional relief of 25 per cent under OTS scheme to help the farmers. With this total relief will be 50 per cent”, he added.

As many as 651 farmers in the south Orissa districts including Ganjam, Gajapati, Ryagada, Koraput, Nabarangapur and Malkanagiri and Srikakulam district in Andhra Pradesh will be benefited to the tune of Rs 2.02 crore.

The amount is small, but the number of beneficiaries are more in the scheme”, Venkaiah pointed out.

“In case the benefit is not availed by the farmers before the deadline fixed by the bank, the farmers will be entitled for the relief amount till June 30, the deadline fixed by the Centre. If the benefit is not availed by the farmers by the due date, the relief amount will be returned to the government. Such farmers will also lose the benefit of crop loans in the future from other banks and financial institutions”, he clarified.

“We fixed our cut off date for the debt relief benefit a month prior to the Centre's deadline so that the farmers can avail the fresh agriculture advances as per the bank loan since the Kharif agriculture season has already started”, Venkaiah said.