Farmers who repaid loans in time will get their due too

MUMBAI
: When the benefits of the recently-announced farm debt-waiver finally trickle
down by June 2008, there will be a big figure of husbandmen on either side of the
eligibility scale. But one subdivision of husbandmen whom the loan-waiver have got not
certainly helped includes the 1s who have repaid their loans as per schedule. The Maharashtra authorities have come up out with a wages strategy for such as farmers,
which, if not as good as loan write-off, should advance a civilization of loan
repayment, the state feels. A
substantial ball of husbandmen in the state would be benefited by the interest
rate cut announced by the state on the fresh recognition in 2008-09 season. In
particular, husbandmen in western Maharashtra and parts of North Maharashtra would
be the greatest donees of this wages for regular repayment, according to
state officials. The strategy is applicable to loans taken from the co-operative
banks and recognition societies. At
the same time, not many husbandmen in Vidarbha and Marathwada would acquire interest
rate subsidy on fresh loans because they have got defaulted on their former debt. Presenting Maharashtra’s budget for 2008-09, finance curate Jayant Patil
declared two slabs of subsidised rates of involvement on fresh recognition to farmers
who have got repaid their dues as per schedule.

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Farmers seeking
short-term loan up to Rs 25,000 would have got to refund it only at 2% charge per unit of
interest. Loans above Rs 25,000 would be charged 4% charge per unit of interest. Farmers
whose outstanding debt acquires written off under the loan-waiver strategy would be
eligible for fresh recognition at 6% charge per unit of interest. Here too, the state government
is bearing the cost of 1% involvement subsidy on the 7% charge per unit announced by the
Centre in 2007 for farm loans. The state will bear a load of around Rs 300
crore on business relationship of involvement subsidy and handiness of fresh recognition flowing to
the co-operative lending institutions.