2020 Telangana loan waiver AGLC_RT148 Download the GO
The Telangana Government has notified guidelines for the implementation of farm loan waiver for all loans between outstanding April 1, 2014, and December 11, 2018, with a cap of ₹1 lakh for each farmer.
Commercial banks have been asked to prepare a list of beneficiaries with the help of local government employees. The total outgo, estimated at ₹16,000 crore, will be disbursed in four installments. State government had recently allotted Rs 1,198 crore in its 2020-21 budget for the scheme
However, all loans below ₹25,000 will be cleared at one go. This will benefit 5.83 lakh farmers.
All crop loans sanctioned or renewed on or after April 1, 2014 and outstanding as on December 11, 2018, are eligible for the waiver.
However, gold loans availed from urban and metropolitan banks or bank branches as crop loans will not be eligible for waiver. Loans availed from the these banks, which also service some rural areas, are eligible for loan waiver.
It will cover short-term production loans and crop loans against gold. Each family will be eligible for a waiver of ₹1 lakh only, including principal and interest. The amount, however, will not include processing charges, legal charges, insurance premium or inspection charges.
While the loans above Rs 25,000 and upto Rs 1 lakh per farmer’s family requires about Rs 24,738 crore, the State government had earmarked Rs 6,225 crore in the budget under the scheme towards first installment.