Government Plans to Bring One-Time Crop Loan Waiver Scheme

Rajasthan Chief Minister Ashok Gehlot announced on Monday that the state government will provide relief to poor farmers by instituting a one-time scheme to waive crop loans obtained from nationalized banks.

"Proposals have been sent to nationalized banks in this regard, and the banks should extend necessary cooperation to the state government in loan waiver of farmers," he said via video conference while addressing the State Level Bankers' Committee (SLBC) and a NABARD seminar.

Agricultural loans classified as Non-Performing Assets (NPA) were waived under a one-time loan waiver scheme recently introduced by the State Bank of India (SBI). The bank waived 90% of the loan, while the farmer contributed 10%, according to Gehlot.

"Other banks should also provide relief to poor farmers along the lines of this scheme," he said.

According to an official release, the chief minister stated that the state government is willing to contribute 10% of the farmer's share.

He stated that the state government has made several efforts in the last three years to provide relief to the common man while maintaining the pace of development.

Gehlot stated that so far, cooperative bank loans totaling Rs 14,000 crore have been waived. Farmers' loans from nationalized banks that were declared non-performing on November 20, 2018, have yet to be waived.

About Non-Performing Asset:

A non-performing asset (NPA) refers to a classification for loans/advances that are in arrears or default. A loan is in arrears when principal or interest payments are missed or late. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his obligations.