Banks to give relief to rain-hit farmers in Haryana

With farmers in Haryana facing widespread crop damage due to unseasonal rains, banks today decided to provide relief to growers by rescheduling their crop and term loans, deferring repayments and raising their consumption loan ceiling.
In order to provide relief to affected farmers, bankers today held a special meeting of State Level Bankers Committee (SLBC) here on 'Natural Calamities -Relief Measures' on the request of BJP-led Haryana government.
The matter assumes significance as rain and hailstorm last month caused massive damage to rabi crops, including wheat, in Haryana.
Haryana government had even sought total relief of Rs 1,135.91 crore from the central delegation led by Union Minister Ram Vilas Paswan last month on account of crop damaged, assistance for interest loss on loans, funds under MNREGA scheme.

"As per preliminary reports, heavy damage has been caused to agricultural crops because of rains and hailstorm. A meeting was today held with bankers to discuss how to provide relief to growers," Haryana Finance Secretary P K Das told reporters here today.
Sharing details with regard to decision taken regarding relief measures, Das said that it was decided that crop loans of farmers would be converted into term loan for repayment in 3-5 years.

He said that cooperative banks and commercial banks provide crop loan to the tune of Rs 4,000 crore and Rs 8,000 crore, respectively, per annum to farmers in the state.

Das said the relief will be provided by bankers to those farmers who have suffered more than 50 per cent damage in their crops because of rains and hailstorm which will be as per RBI guidelines.
In case of crop loans, bankers will convert short term crop loan to the extent of damage as assessed by the state government with interest due up to March 31, 2015, into term loan.
In addition to it, a moratorium of 12 months will be given in respect of repayment of principal and interest including interest of moratorium period with effect from April 1, 2015, bank officials said.

As on March 31, 2015, the total outstanding crop loan in Haryana was pegged at Rs 28,558 crore with more than 22 lakh KCC cards.
In case of term loan, moratorium will be given for one year period with repayment of loan be dependent on the capacity of borrower and life of asset, said Das.
The relief will also be given to artisans under these relief measures, he further said.