About the Scheme


• Taking plight of the farmers into consideration in the state, the Government while giving priority to Agriculture sector has waived off the outstanding loans of all the farmers in the state as on 31.03.2014 earlier.
• In the current dispensation, crop loans are usually sanctioned for a period of one year and rolled over at the end of the year on payment of interest. There are hardly, fresh few loans giving cash inflow to farmers thus forcing them to purchase high cost inputs on credit at a very high interest.
• The Government of Telangana is convinced that unless this cycle is broken with crop loan waiver, farmers will remain trapped in perpetual indebtedness. Keeping in view this imperative, the Government of Telangana has once again formulated the Crop Loan Waiver Scheme-2018 following announcement made by Hon’ble Chief Minister in this regard. This scheme covers only institutional loans and does not cover loans from non-institutional sources.

• The Government vide G.O Rt No.148 dt 17.03.2020 had issued the Guidelines for implementation of the Crop Loan Waiver Scheme-2018
• This scheme will cover short term production loans and crop loans against gold disbursed to farmers in the Telangana State by scheduled Commercial Banks, Cooperative Credit Institutions (including Urban Cooperative Banks) and Regional Rural Banks collectively called as the “lending institutions”.
• The Amount eligible for waiver will be upto Rs.1.00 lakh (principal together with applicable interest) per family. The farmer family is defined as head of family, spouse and dependent children.
• All crop loans sanctioned/ renewed on or after 01.04.2014 and outstanding as on 11.12.2018 are eligible under the scheme
• Gold Loans availed from Urban and Metropolitan Banks/Bank branches as Crop Loans shall not be eligible for waiver. However, Loans availed from the Urban/Metropolitan branches, which have rural areas also as their service areas are eligible for Loan waiver.
• The farmers who have outstanding loan upto Rs.25,000/- only will be waived off in the 1st Phase.
• The Government vide G.O Rt No.206 dt 11.05.2020 had issued the Amendment Guidelines for crediting the benefit to the Loan Accounts of the eligible farmer instead of A/C payee Cheque.
• For monitoring the data, Logins have been provided to District Collectors, District Agriculture Officers and for updation of errors Logins have been provided to Agriculture Extension Officers

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