Banks offer to waive deceased farmers' loans

The banks in Kerala have conveyed to the state government their decision to write off agricultural loans up to Rs 1 lakh taken by the farmers who committed suicide.

The bankers met chief minister V S Achuthandandan here under the aegis of the state level bankers committee and conveyed their decision.

The chief minister who spoke to journalists after the meeting said that the government had requested the banks to waive the penal interest and restructure the debt repayment schedule.

Achuthanandan said that his government would also consider offering help to the farming community. This would in fact be in addition to the 2 per cent subsidy provided by the Centre to farmers who suffered due to various factors.

The government also requested the banks to come out with one-time settlement to help farmers clear their pending dues. The chief minister added that an official mechanism would be put in place so that farmers who should benefit from the new measures could be identified.

According to Achuthanandan, over 1500 farmers committed suicide in the past five years in the state. "It is the duty of the government and banks to help poor farmers. If the help is not extended. more farmers would resort to suicides," he added.