Bengaluru: Considering the prevailing severe drought situation, the state government has decided to waive interest on agricultural loans taken by farmers through cooperative institutions.
The Cooperative department has issued a circular to this effect indicating interest waiver on short-term, medium-term and long-term agricultural loans for the period October 1, 2015 to April 15, 2017, if principal amount is repaid by 15th June, 2017.
The State Government will repay the interest paid to the farmers by cooperative societies. In this context, it is clear that cooperative institutions can give fresh loans to farmers making repayment.
Farmers in the state are facing severe hardship due to lack of rainfall. Hence, the repayment period has been extended and the interest component waived to benefit farmers across the state, confirmed cooperative department sources.