KCR to announce loan waiver program on August 15
A state government meeting with 42 bankers was informed on Friday that Chief Minister K. Chandrasekhar Rao would officially announce a waiver of the agricultural loan in the range of 25,000 to 50,000 on August 15.
In the first phase, the government had waived all loans borrowed by farmers up to 25,000. A Cabinet meeting recently decided to forgo loans above 25,000 and below 50,000 this year. Friday’s meeting chaired by Finance Minister T. Harish Rao followed this decision.
Addressing the meeting, Mr. Harish Rao asked bankers to ensure that farmers’ loan accounts show zero balance after the government releases the money from August 16. Farmers should then be eligible for further loans. The money released by the government should not be adjusted against other farmers’ debit balances.
He said the government would release 2,006 crore to six lakh farmers in this loan forgiveness phase. Bankers and government officials should work in coordination to credit the amount to eligible farmers. Bulk SMS messages on behalf of the chief minister are expected to be routed to farmers’ phones once the money has been credited to the accounts. The messages should also announce that farmers are now eligible for new loans.
At the same time, banks are also expected to send separate text messages to farmers indicating that their outstanding amounts have been received.
Agriculture Minister S. Niranjan Reddy has called on banks to unconditionally extend the loan exemption to farmers.
The meeting was attended by the Principal Secretary of Finance, K. Ramakrishna Rao, Secretary of Agriculture Raghunandan Rao and other senior finance and agriculture officials.