AP Govt releases first installment for Loan Waiver!

Andhra Pradesh Government has released the first installment of 5000 Crore for the Loan Waiver to farmers in the state. This amount will be credited to Andhra Pradesh Farmers Empowerment Corporation which will take care of the loan waiver. The corporation will be started tomorrow in Vijayawada. This Corporation will be able to pool in funds three times the 5000 Crore from open market and will issue bonds to farmers. These bonds will give 10% interest to farmers but in case they want the money right now, the bonds can be exchanged with the corporation from January.

Initially, the Corporation would clear to the extent of 20% of farmers’ loans to banks in this financial year and later in four annual installments. 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.