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Farmers no to rejig of crop loans in Nellore
Though the Central government had approved implementation of the Interest Subvention Scheme (ISS), still farmers are not coming forward to reschedule the crop loans as they are not willing to lose benefits from the State government.
Nellore: Though the Central government had approved implementation of the Interest Subvention Scheme (ISS), still farmers are not coming forward to reschedule the crop loans as they are not willing to lose benefits from the State government.
The Reserve Bank of India (RBI) also announced in March this year that the ISS will be implemented with modifications for the years 2018-19 and 2019-20. In fact, normal rate of interest for crop loans from will increase from 9 to 11 per cent if the loan is rescheduled and the loan would be converted as term loan which attracts higher rate of interest.
As part of the ISS, the Centre provides 2 per cent subvention for short term crop loans and provides 3 per cent of additional subvention in case of prompt repayment within a year. The State government supports the rest of 4 per cent to the farmers making the loan interest-free. But these benefits will not apply in case farmers fail to repay loans on time and reschedule them.
The Centre is implementing the scheme through public and private sector banks at a reduced rate of 7 per cent interest per annum for short term loans up to 3 lakhs to the farmers for ensuring availability of agriculture credit providing 2 per cent interestsubvention.
The ISS is being implemented through the banks with reimbursement facility by the RBI, Regional Rural Banks and National Bank for Agriculture and Rural Development (NABARD).
Crop loans are being provided by the District Central Co-operative Banks (DCCBs) and Primary Agricultural Co-operative Societies (PACS) at 7 per cent per annum are eligible for refinance through State Cooperative Banks or DCCBs from NABARD out of Short Term Cooperative Rural Credit (STCRC) fund allocated by Government of India every year.
"Majority farmers are in fear that they wouldn't get benefits from the State and Central governments if the loans are rescheduled where crop loan would be converted as normal term loan which attracts higher rate of interest with no eligibility for subvention. Naturally, they may not be repaying loans due to continuous drought conditions in the district," said YV Ram Prasad Reddy, Lead District Manager.
The Central government is not only supporting interest subvention but also direct income support at the rate of Rs 6,000 per year under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). The benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for a further period of six months after the harvest of the crop.
Further, out of 18,926 tenant farmers in the district only 10,290 have been provided with loan eligibility cards where around 40 per cent are still be made eligible for loans.
Farmers are also eagerly looking forward for any support from the State government under critical situation of severe drought and hence they are not willing to reschedule the loans, said an association leader.
