Andhra Pradesh government had issued a G.O regarding the methodology of Loan Waiver for farmers. Banks have received clear instructions from the government and they are in the process of identifying the beneficiaries. This process is expected to be completed by September 15th and the list will be sent to the government. The loan waiver will be completed according to the funds released by the government in the form of cash, bonds whatever.
Banks have clarified that Loan Waiver will only cover crop loans and Gold loans taken for agriculture. Loan Waiver will not cover the loans taken for fisheries, garden crops etc. It is known that Loan Waiver to farmers is the prime election promises of Telugu Desam Party before the elections. After assuming power, Chandra Babu Naidu had announced a loan waiver amounting to 1.5 Lakhs per family which will make about 97% of the families debt free. Chandra Babu is also waiving off loans to the extent of 1 Lakh to each DWACRA group and weavers. The waiver will be a huge burden to the deficit state budget.
