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Karnataka announces loan waiver of Rs 8,165 crore; more than 22 lakh farmers to benefit

Karnataka has joined the list of the states that have announced loan waiver for farmers in recent times. The decision to waive loans of farmers in Karnataka was taken by the state government today. The loan waiver scheme announced by Karnataka government is worth Rs 8,165 crore. Under the scheme, loans up to Rs 50,000 will be waived off by the state government. It is expected that the loan waiver scheme will benefit more than 22 lakh farmers in the state of Karnataka.

Speaking about the loan waiver scheme, Karnataka Chief Minister Siddaramaiah said, “Farmers are in distress. They have been demanding loan waiver. We have to respond to farmers, even though it will have an impact on state’s finances.” The scheme would be applicable for loans taken from cooperative banks and accounts that are outstanding till yesterday. In case of loans taken from nationalized and grameen banks, Siddaramaiah said that the center will have to come to the rescue of such farmers.

Siddaramaiah said that exposure to cooperative banks is only 20 percent whereas the rest of the farm loans have been taken from grameen, nationalized and other banks, which are under the jurisdiction of the central government.

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