Rs 642 cr benefit to farmers from one-time settlement of loan

Nagpur, Nov 23 (UNI) Farmers stood to gain a benefit of Rs 642 crore due to the one-time settlement scheme for loans of co-operative agriculture rural multi-purpose development banks in the state, Minister for Cooperation Patangrao Kadam told the Maharashtra Legislative Assembly today.

In a written reply to Subhash Wankhede (Shiv Sena) and several others, Mr Kadam said the government had introduced the scheme for the Maharashtra State Cooperative Agriculture Rural Multi-Purpose Bank Limited of Mumbai and 29 other district cooperative agriculture rural multi-purpose banks in the state on September 29.

Under the scheme, the banks would close the loan accounts of applicants who agreed to pay the amount outstanding as on March 31, 2004, along with interest at the rate of 10 per cent thereon, Mr Kadam said. Similarly, interest would be charged at 6 per cent from applicants who paid the settlement amount within six months, he said.

The state government would bear the financial burden for the losses that the banks would suffer on account of the one-time settlement scheme, he added.

UNI