Telangana News | Government Issues Guidelines for Crop Loan Waiver, Using Ration Cards as Criteria

Hyderabad: The State government has released detailed guidelines for the implementation of the crop loan waiver up to Rs. 2 lakhs, announcing the use of ration cards as a criterion for identifying farmer families.

The government clarified that the waiver applies to loans taken between December 12, 2018, and December 13, 2023. A dedicated web portal has been established for processing the waiver, and the waiver amounts will be disbursed in ascending order.

According to the guidelines, every farmer family owning land in Telangana is eligible for the Rs. 2 lakh loan waiver. This scheme covers short-term crop loans obtained from Scheduled Banks, Regional Rural Banks, and District Co-operative Central Banks within the state.

The waiver applies to loans sanctioned or renewed on or after December 12, 2018, and outstanding crop loans as of December 9, 2023.

Verification of farmer families will be based on possession of a food security card (ration card) maintained by the Civil Supplies department. Eligible waiver amounts will be directly credited to the beneficiaries’ bank accounts through Direct Benefit Transfer (DBT).

For Primary Agricultural Cooperative Societies (PACS), the waiver amount will be disbursed to the District Co-operative Central Bank (DCCB) or bank branch, which will then credit the amount to the farmer’s PACS account.

Farmers with outstanding loans exceeding Rs. 2 lakh must first repay the excess amount to the banks. Subsequently, eligible amounts up to Rs. 2 lakh will be transferred to the farmers’ loan accounts.

In cases where the loan exceeds Rs. 2 lakh, priority will be given to waiving loans taken by women in the family, with the remaining amount waived proportionally in favor of male family members.

These guidelines aim to streamline the distribution of benefits under the crop loan waiver scheme, ensuring targeted relief to eligible farmers across Telangana.