Karnataka - Belgaum   

`Repay outstanding dues and get interest waiver'

Staff Correspondent

Farmers warned against falling prey to loan waiver promise

BELGAUM: Farmers who have taken loans from cooperative banks and societies have been asked to repay their outstanding dues to avail themselves of interest waiver on their loans and new loans at 6 per cent interest for 2005-06.

They have been warned against falling prey to promises to waive their loans, made by some political parties. A political party has been promising farmers that it will not only waive the interest part but also the principal amount of the loan if it comes to power, H. Jayadev, Managing Director, Karnataka State Cooperative and Rural Development Bank, said here on Friday.

Addressing presspersons, he appealed to farmers to clear their outstanding dues before June 30 to avail themselves of the interest waiver benefit and new loans at 6 per cent interest.

He categorically stated that the Government has facilitated only a one-time golden opportunity to farmers, including the defaulters, to clear their loans and it is up to them to take advantage of the scheme. The June 30 deadline will not be extended further. The Government has made a budgetary provision of Rs. 492 crores towards subsidising the interest component. It has promised to provide more if needed.

Mr. Jayadev said loans taken by farmers amount to Rs. 1, 219 crores as of now. While the demand as on date accounts for Rs. 866.25 crores, including arrears, principal loan amount and interest on it from 3,12,921 assesses. Of the Rs. 866.25 crores, the principal loan amounts to Rs. 370.51 crores and Rs. 495.74 crores as interest.

However, only Rs. 130 crores has been recovered and efforts are on to expedite recovery. A sum of Rs. 2 crores is being recovered every day. In Belgaum district, loan recovery is better that some other districts. The total outstanding loans taken by farmers from cooperative institutions amount to Rs. 49.183 crores wherein the principal loan amount is Rs. 24.208 crores. If farmers cleared this, they will get the benefit of interest waiver of Rs. 30.67 crores.

In a special drive, cooperative institutions have recovered Rs. 50 lakhs on Thursday, the bank Director, Bapugouda Patil said.

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`Repay outstanding dues and get interest waiver'

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