Loan waiver scheme benefits defaulters, bars debt clearers

The Pioneer, 21st June, 2008
Bikash Khemka Bhawanipatna

A fairly large number of farmers in KBK districts were deprived of availing benefits of agriculture loans yet defaulters managed to take its advantages thanks to loan waiver scheme implemented by the Union Government.
A Government's circular (dated June 26, 2008) to this effect clearly mentions that the scheme will cover direct agricultural loans extended to marginal farmers, small farmers and other farmers by commercial banks, regional rural banks, cooperative credit institutions and local area banks.
As per the scheme, March 31, 2007 was specified as the cut off date for getting the benefits under the scheme and the Government has directed to all concerned banks to submit the requisite data of the beneficiaries by June 30, 2008.
But in most cases, the loans availed by the farmers prior to March 31, 2007 have been recovered by banks and the farmers were further financed with the same amount thereafter that reportedly deprived them from availing the benefits under the new scheme.
They were also not provided any extra amount as applied by them therefore, they had to depend on the local moneylenders with high interest rates.
On the other hand, those who continued to remain as defaulters and did not repay the loan amount were benefited by the loan waiver scheme announced by the Union Finance Minister. However, the Minister has not announced any benefits to those who regularly clear the farm loans in time nor does the scheme extend to those who have repaid the debt before March 31, 2007.
Being not aware about the provisions of the scheme we could not avail the advantage of the scheme, allege a farmer. Had we not repaid the loan on time we would have been benefited by the scheme, he rued.
Sources said the farmers of Kalahandi district are in dilemma if the loans allocated this year will be waived in the next financial year.