According to guidelines issued by the agriculture department, a farmer family will be taken as a beneficiary unit. Each eligible farmer family can receive a waiver of up to `2 lakh of short-term crop loans taken between December 12, 2018 and December 9, 2023. The outstanding amount of principal and interest, as of December 9, 2023, will be considered for the purpose of loan waiver.
The government stated that the ration card (food security card) issued by the civil supplies department will be considered for identifying beneficiaries eligible for the waiver. The Food Security Card (Ration Card) database maintained by the civil supplies department will be used to identify farmer families. This card contains the details of their children and spouse of the household owner.
A dedicated web portal has been established for the implementation of this scheme.
The scheme covers crop loans taken from branches of Scheduled Banks, Regional Rural Banks, and District Co-operative Central Banks within Telangana. The waiver amount will be directly credited to the beneficiaries' loan accounts. It will be released in ascending order based on the loan amount.
The eligible waiver amount will be credited directly to the beneficiary farmers' loan accounts through the Direct Benefit Transfer (DBT) mode. In the case of loans taken through Primary Agricultural Credit Societies (PACS), the amount will be released to the DCCB or the respective bank branch, which will then deposit it into the farmer's account in PACS.
If a farmer family owes more than Rs 2 lakh of loan, they are required to repay the amount to the banks and the government will transfer `2 lakh subsequently.
If a farmer’s family has multiple members, including women, owe money to the bank, loans recorded in the name of women will be waived off first, and the balance money from the `2 lakh limit will be used to waive off loans of the male members of the family.
