No takers for Maharashtra's interim loan, here is why

The Devendra Fadnavis government announced a loan waiver of Rs 34,000 crore

Despite the Maharashtra government relaxing norms for interim loans and banks issuing circulars urging farmers to avail there are no takers. Out of the 65 lakh farmers eligible to avail the loan, Maharashtra cooperatives minister said that, hardly 4,000 farmers have availed it and the reasons come as a surprise to the government too.

"The number of farmers who have availed the interim loans stands at just about 4,000. The problem is from either side. Some farmers think Rs 10,000 is too little while in many places banks are unwilling to come forward and offer the interim loan despite the government announcing that it will act as guarantor for the interim loans," Subhash Deshmukh, Cooperatives Minister told OneIndia.

Taking note of banks unwilling to provide loans, the government ensured that at least district banks issue a circular urging farmer to avail the interim loan. The Devendra Fadnavis government had asked for sowing to be postponed in the first week of July due to delayed monsoon. Now, sowing in the state has neared completion in more than 65 percent of the region. In a bid to ensure that a debt-ridden farmer doesn't lose out on sowing, the interim loan was announced but there seem to be no takers for the same.

"We know that farmers are unwilling to avail the interim loan for various reasons. Some farmers think it is best to stay away from hassles of another loan when a waiver has already been announced. Some farmers want to wait for their loan waiver benefits so they do not have to visit the banks separately for the interim loan and instead avail a fresh loan," Deshmukh added.

Unlike other states that announced loan waiver, the Maharashtra government went one step ahead to allow interim loans which are part of the larger loan waiver scheme. The delay in issuing directives to banks seem to have defeated the whole purpose.

OneIndia News