The Hindu Business Line : Banks may waive select farm loans in Kerala

The banks in Kerala have agreed to consider the possibility of writing off agricultural loans of up to Rs 1 lakh taken by those farmers who committed suicide, according to the Chief Minister, Mr V.S. Achuthanandan.

He told newspersons after a meeting of the State Level Bankers Committee here on Tuesday that the State Government had asked the banks to implement a package providing for one-time settlement of farm loans, write-off of penal interest and rescheduling of loans in crisis-ridden areas. The Government would make the arrangements to identify such areas, he said.

The banks, on their part, informed the Government that they would have to consult the Reserve Bank before taking a decision on the matter. The State Government has made the demand over and above the two per cent interest relief on farm loans announced by the Centre.

Separate meeting

The Chief Minister said that a separate meeting would be convened to discuss the farm loans given by the cooperative banks.

He noted that more than 1,500 farmers in the State had committed suicide. Many more farmers have availed themselves of loans and further talks would be held with the banks to find out what could be done to help them.

Mr M.B.N Rao, Chairman and Managing Director of Canara Bank, said the banks had set apart Rs 9,658 crore for agricultural loans in the current year. Besides, the banks had also been directed to help farmers in flood-hit areas, he added.

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