Rs 1 Lakh Farm Loan Waived in UP by Yogi Adityanath (How to Apply and Eligibility)
2 weeks after starting his journey as Chief Minister of Uttar Pradesh, Yogi Adityanath chaired the first cabinet meeting of his ministry. Several important decisions were taken during the cabinet meeting including topics like Anti-Romeo Squad, Closure of Slaughterhouses running illegally etc. One of the most important and much awaited decision was that of waiver of farm loans.
Big Burden on Exchequer
The cabinet, under the chairmanship of Adityanath, came up with the decision that farm loans up to INR 1 lakhs will be waived off and for this, the UP Government will be shelling out INR 36,000 crores! This decision comes as a promise fulfillment – a promise that Bharatiya Janata Party made during its election rallies only recently.
Marginal and Small Farmers to Benefit | How to Apply
Process to apply is still not clear. The state government says that with this decision, 2.25 crore farmers in the state of Uttar Pradesh will be benefiting even though the government exchequer will be absorbing a massive blow.
The government data says that there are total 2.30 crore farmers in Uttar Pradesh. Of these, 2.15 crore farmers can be tagged as marginal farmers and small farmers. Unfortunately, because of Force Majeure (natural calamities outside the control of humans), most of these farmers had to deal with crop losses and hence, they collectively defaulted on loans worth INR 62,000 crores.
- You should be a laghu Kisan
- You should be a Semant Kisan
- Loan taken should be for Farm Purpose only.
- All Nationailized banks Like SBI, PNB etc
- All Co operative Banks
Fears of the Centre
Yes, it is true that Yogi Adityanath went ahead and approved the waiver however, Central Government is afraid that similar demands may start rising out of other states that were also hit by natural calamities. So, the Centre has clarified that it will not approve of any waiver by placing burden on the central exchequer.
In case you didn’t know Punjab, which has an ailing health on fiscal grounds has also decided to go ahead with waiver of farm loans. A similar waiver but on a grand scale took place back in 2008 when UPA government was in power. That waiver helped 50 million farmers in India but the central exchequer had to bear the burden of INR 65,000 crores.