Andhra Pradesh government has agreed to release 1120 Crore more for the Farmers’ Loan Waiver scheme. Chief Minister Chandrababu Naidu has agreed to waive all the loans below 50000 at one go. These loans will also include the amounts of 50000 or less even after applying Scale of finance.
This new policy will cost 1120 Crore more to the government and the funds will be released as soon as Chandrababu signs the required file. Once the amount is finalized, every farmer in the state will have his loan below 50000 waived off.
Loan Waiver to farmers and women self help groups is one of the flagship schemes of Telugu Desam Party in the last elections. After coming to power, there is tremendous pressure on Chandra Babu to deliver it even though the state is reeling under the pressure of bifurcation. He announced to waive off loans up to 1.5 Lakhs per family which will make 97.6% families in the state debt-less. Farmers with more than 50000 loans will receive the money in five equal installments. They will be given bonds to rest of the amount after the first installment.
