Farm Loan & Agrarian Distress

Farm loans may be crop loans or investment loans taken to buy equipment. Both farmers and banks reap a good harvest when all is well. But when there is a poor monsoon or natural calamity, farmers may be unable to repay loans. The rural distress in such situations often prompts States or the Centre to offer relief — reduction or complete waiver of loans.

What is Loan Waivers?

  • Essentially, the Centre or States take over the liability of farmers and repay the banks.
  • Waivers are usually selective — only certain loan types, categories of farmers or loan sources may qualify.
  • For ....

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