Naidu announces schedule for massive loan waiver initiative

Seeking to fulfill a key election promise, Andhra Pradesh Chief Minister N Chandrababu Naidu today announced to waive off farm loan of up to Rs 1.50 lakh per family in the state.

"Today, we have implemented the manifesto. For the last six months we have done enough exercise. In this process, we are settling around 40 lakh accounts. Nearly, 27 lakh persons are going to be benefited, 23 lakh families are going to benefit from this scheme. It is going to be implemented from 10th of this month," Naidu told reporters.

Observing that farmers in the state faced severe crisis in agriculture leading to suicides, he recalled his promise to help the farming community.

"We wanted to free farmers from debt trap. Up to Rs 50,000 per family, we are giving total money (at one stroke). Above Rs 50,000, the sum will be given in five installments. First installment which is 20 per cent (of the total money) and they will be eligible to take money again (fresh loans from bank)," he said.

The remaining 80 per cent amount for families with loan amounts above Rs 50,000 would be adjusted on annual basis over next four years as per norms.

The government would bear total interest at the rate of 10 per cent.
As per the 'Debt Redemption Scheme', those who took loans between April 1, 2007 and December 31, 2013 are eligible for waiver.

Horticulture farmers would be given relief of Rs 10,000 per acre as per norms.
The number of accounts entered by banks is 82.66 lakh and number of accounts cleared for loan waiver in the first phase is 40.43 lakhs.

As many as 26.77 lakh farmers have been cleared in the phase one.
In phase II (after receiving necessary documents), 42.23 lakh accounts will be processed.

A grievance redressal mechanism is being put in place by the state government, which would start functioning from December 9.

The government has finalised the list of beneficiaries after synchronising it with Aadhaar cards and ration cards to avoid loopholes.