Government Announces Crop Loan Waiver Guidelines in Telangana

Hyderabad: The state government has delivered promising news for farmers. The Revanth Reddy administration has decided to waive crop loans up to Rs. 2 lakh for each farmer family. This waiver applies specifically to short-term crop loans taken between December 12, 2018, and December 9, 2023.

The guidelines, released on Monday, outline that the ration card will serve as the standard for identifying farmer families eligible for the waiver. According to the government, loans of all selected beneficiaries will be waived immediately. This initiative covers crop loans from scheduled commercial banks, regional rural banks, and district cooperative central banks.

For families with loans exceeding Rs. 2 lakh, the balance must be paid first to qualify for the waiver of Rs. 2 lakh. There is no exemption for firms, companies, Self Help Groups (SHGs), Joint Liability Companies (JLTs), or Rythu Mitra Sanghas (RMGs).

Implementation and Eligibility

The waiver, in line with the Revanth Reddy government’s election promise, will be implemented by the Director of Agriculture. The National Informatics Center (NIC) in Hyderabad will support the scheme, with a dedicated web portal set up for managing loan data and eligibility verification. The State Bank of India (SBI) will jointly manage the portal with the Director of Agriculture.

A Bank Nodal Officer will be appointed in each bank to coordinate the scheme’s implementation. These officers will ensure that loan data is correctly submitted and validated to prevent irregularities.

Identification and Data Mapping

The scheme will map farmers’ Aadhaar numbers with their loan accounts, patta passbook database, and the state’s food security card database to identify eligible beneficiaries. The loan waiver amount will be directly credited to the loan accounts of identified farmers through Direct Benefit Transfer (DBT).

In the case of loans managed by Primary Agricultural Cooperative Societies (PACS), the waiver amount will be released to the District Cooperative Central Banks (DCCB) and then deposited into the respective farmer accounts.

Additional Provisions

• The waiver covers short-term crop loans sanctioned and renewed from December 12, 2018, to December 9, 2023.
• Loans must be less than Rs. 2 lakh to qualify for the full waiver. For loans exceeding Rs. 2 lakh, farmers must first repay the balance before receiving the Rs. 2 lakh waiver.
• If multiple loans exist within a family, women’s loans are prioritized for the waiver, with any remaining amount applied to the men’s loans proportionally.
• Fraudulent claims will be recovered, with the Director of Agriculture empowered to enforce recovery.

The government aims to ensure a smooth and transparent implementation of this scheme, supporting farmers and addressing any grievances within 30 days of application.