Crop loans of Mysuru farmers to be rescheduled

By TheHindu on 04 May 2017

Crop loans of all farmers in Mysuru district will be rescheduled as all the seven taluks have been declared ‘drought-hit’ this year.

The banks, at the behest of the Reserve Bank of India, are rescheduling the crop loans of the farmers in the district and also are not insisting on farmers paying instalments of term loans this year.

K.S. Shivalingaiah, Manager, Lead Bank, told The Hindu said that crop loans availed by farmers this year alone would be rescheduled. He noted that crop loans of previous years would not be considered for rescheduling. Similarly, he said that advances against pledge or hypothecation of agricultural produce other than standing crop, tied loans, crop loans taken against gold, and loans for allied activities would not be eligible for rescheduling. He added that crop loans of 2016-17 are eligible for reshedule and distribution of fresh crop loans this year was not affected by the drought.

Mr. Shivalingaiah said that different banks had distributed over ₹2,423 crore crop loans for the year as against the target of ₹2,979 crores. The compilation of accounts was under way and he was confident that all banks had achieved 100% progress in loan disbursement to farmers. It was the ‘moral duty’ of the banks to come to the aid of the farmers when they were in distress, the manager said, and added that most of the banks were engaged in informing farmers voluntarily about rescheduling of loans and ask them to avail of the facility.

The banks continued to give crop loans to farmers this year too to ensure that agricultural operations were not impaired.

However farmers who were chronic defaulters were not eligible to claim for rescheduling of loans.

Meanwhile, the Lead Bank manager expressed disappointment over the lack of commitment of some private banks in implementing government-sponsored schemes and also extending loans to farmers without any hitch. He alleged that many private banks continued to neglect the government schemes and also distribute loans to farmers despite several reminders from the Lead bank.

He said that he had already brought this to the notice of the SLBC and RBI and had appealed to them to instruct the private banks to be involved in government schemes and extend loans to farmers.