JCC (J) chief writes to Baghel on toothless loan waiver

Janta Congress Chhattisgarh (J) president Amit Jogi urged Chief Minister Bhupesh Baghel to issue an order for one-time settlement of loans taken by farmers from all commercial banks and financial institutions, including private, before March 31, the close of current financial year.

In a letter to Baghel, he said the waiver could be funded through a supplementary budget, ahead of the coming Lok Sabha polls.

Dubbing as "toothless tiger" the current loan waiver announced by the state government, he said, “The State government is trying to gain mileage by announcing waiver of loans taken only from public sector banks without fixing any time limit and norms, with an eye on Lok Sabha polls 2019.”

He demanded that farmers' loans from private banks, private financial institutions, RBI operated micro-finance institutions (MFI) and non-banking sources, should be included under the waiver scheme. Besides, medium and long-term loans should also be waived along with short-term loans.

Mostly private

He points out, “Loan waiver is not applicable to corporate/partnership firm/trust, MFIs, loan against standing crop, place and hypothecation cases.”

“The current waiver order is for loans from cooperative banks, Chhattisgarh State Rural Bank and nationalized banks only, that too short-term loans. Around 72% farmers have availed loans from private sector banks and other financial institutions,” he noted.