Andhra Pradesh Chief Minister Chandra Babu Naidu has announced the loan waiver for farmers a short while ago. The government will be waiving off the loans (crop loans and gold loans combined) up to 1.5 Lakhs to each family. The government will make sure each family will get only 1.5 Lakhs benefit irrespective of any number of accounts and loans the family possess.
One more significant decision taken by Chandra Babu is that the waiver will also be extended to families those who already repaid the loans. This program will cost 37,900 Crores covering all the loans till March 31st 2014. The AP CM assured that this decision will waive off the loans to 100% for almost 96% of farmers. Chandra Babu has announced to form a committee to look in to the ways to accumulate money for the waiver.
The CM also added that each DWACRA group will be paid one lakh as corpus fund and he also announced to waive off the loans of Weavers in principle but said the details are yet to arrive. He also stated that government is yet to receive a response from RBI over one year moratorium and 7 years rescheduling.
