UTTAR PRADESH GOVERNMENT WAIVED OFF FARM LOAN OF 92.5% SMALL AND MARGINAL FARMER OF STATES

UP Government waive off  Rs 36359 Cr. of Small and Marginal farmer agriculture loan

Loan Amount waived off :  Rs 1 lakhs

Benefited farmers: 

As per UP government-
Small farmers would include all farmers having up to 5-acre land.
Marginal farmers while those having 2.5-acre land.

Loans on State Farmers: 

Farm loan waiver decision will benefit waiving loans of small and marginal farmers who form 2.15 Cr ( 92.5%) of the total 2.30 crores farmers in the state UP. Rs30,729 crore was required for waiving loans of small and marginal farmers.

Farmers in the state were unable to repay loans worth around Rs 62,000 crore after natural calamities had lead to severe crop loss.

Waiver of Loan Scheme  also covered NPA Farm Loans:
UP having aproximetly 7 lakhs other farmers who had taken loans which turned into non-performing assets (NPAs).Total outstanding dues of Rs5,630 crore have also been written off as announced NPA. all farm loan NPAs of small and marginalised farmers will be settled through a one-time settlement.

Farmer Loan cover duration:
The scheme will benefit all small and marginalized farmers, who took crop loans until March 31, 2016. All of their remaining amount to the banks until March 31, 2017, will be paid by the government.

Farmer Loan Type covered in Waiver:
The waiver by the state government applies to loans taken by these farmers against seeds for wheat and paddy crops, besides pesticides and fertilizers.

Waiver of farm loan covered Banks: 
The loan waiver would apply to all banks, including cooperative banks.

Government Raised fund for Loan Waiver:

UP State is already reeling under a debt of  Rs 3,27,470 crore, The nation's second most indebted state, according to a RBI's state fiscal report up to 2016.a condition to cap fiscal deficit to under 3 per cent of the GDP.The state would raise funds for the loan waiver through a 'Kisan Relief Bond'.Kisan Rahat Bonds for raising Rs36,359 crore required to raise money for the farm loan waivers.