Fresh borrowing by farmers who wiped debt with loan waiver
The Maharashtra government’s farm loan waiver scheme helped various farmers in Maharashtra. The scheme helped farmers wipe their slate clean, but 63% of them have taken loans till May 31 this year.
As per the report from the State Level Bankers’ Committee, crop loans of 31.51 lakh farmers from across Maharashtra were waived off under the Mahatma Jyoti Rao Phule Yojana. And off this scheme, 63% of farmers availed fresh crop loans.
The total amount of crop loan issued to farmers was Rs. 13,152 crores till 31st May. Many farmers took crop loans ranging between Rs. 25,000 to Rs. 75,000. The crop loan was easily available to framers.
The state agriculture minister of Maharashtra, Dada Bhuse, said, “Our priority while introducing this loan waiver scheme was not only to repay the crop loans but also to ensure that the farmers are not treated as defaulters. Their CIBIL record should also be good to get the loan.”
As per the scheme by the MVA government, The amount given to the crop loan waiver was upto 2 lakh obtained between April 1st, 2015 and March 31, 2019. The farmers who are eligible for the loan amount over 2 lakh have to pay the remaining amount as a one-time settlement.
The scheme has benefited a large number of farmers and a total amount of Rs. 20,109 crore loan has been waived so far.
The annual credit plan(ACP) for the year 2021-22 for crop loan is Rs. 55,560 crores, and the potential linked credit plan (PLP) for crop loans has been set at Rs 79,190 crore.