Chief Minsiter Devendra Fadnavis stated that the government will ensure that only needy farmers benefit from the loan waiver scheme of the government which will be monitored with the help of a digital platform.

This statement was made by the CM considering the scam which took place in Maharashtra after the UPA government in the Centre wrote off debts of the farmers in 2008 which deprived the real distressed and deprived farmers of the benefits intended for them.

The state government has formed a joint committee which will frame the conditions within a week regarding the benefits of the loan waiver for the intended farmers.

He suggested that farmers who were financially better off and professionals and
government employees also into farming be left out of the scheme.

The waiver is stated to stress the state which is already under a lot of debt. The government will be required to raise Rs. 25,000 crore or more for the loan waiver.

The CM lauded the efforts taken by the Andhra Pradesh CM in using digital platform to eliminate duplication of bank accounts to check misuse of the loan waiver and he showed his interest in adopting the same model in Maharashtra.More
Posted on: 2017-06-20 22:49:29

Farmers of the Bhartiya Kisan Sangh (BKS) who are demanding a loan waiver in the state of Rajasthan have launched an indefinite strike “mahapadav” at eight cities in the state since Thursday. Almost hundreds of farmers are sitting at divisional headquarters in Kaipur, Jodhpur, Udaipur, Ajmer, Kota, Bikaner, Bharatpur and Sikar.

BN Chaudhary who is a BKS official stated that they want the government to listen and do something for the welfare of the farmers. The agitating farmers are also demanding rise in the Minimum Support Price (MSP) based on input cost, calling of special session of the state assembly for discussion of their issues, formulating farmer-friendly agricultural policies and implementation of some irrigation projects.

Chaudhary also stated that purchasing of crops below the MSP should be criminalized with punishments. He criticized the government for trying to prevent the farmers from protesting.

The Rajasthan government has cancelled the leave of district collectors and police officials in view of the protest and has asked them to keep a close watch on the situation. Security has also been beefed up in areas around the “mahapadav” sites.
The government has begun procurement of garlic and has also extended the date for wheat procurement to June 30.More
Posted on: 2017-06-17 09:53:06

The BJP government in Maharashtra agreed in principle to waive off the loan for all sections of farmers on Sunday. The criteria for the loan waiver will be decided by a committee of officials and agriculturists.

The farmer groups who were agitating and were on strike for the past 10 days have called off their protest upon the assurance of the government of a loan waiver. They have set July 25 as the deadline for the government to meet its promises. The agitation was started in west and north Maharashtra on June 1 with the supply of fruits and vegetables being hit. The common man was affected with the soaring prices.

The Revenue Minister Chandrakant Patil announced the loan waiver after the earlier waiver announced last week by CM Devendra Fadnavis was spurned. In a significant climbdown, the state has agreed that even cultivators with large land-holdings would qualify for a write-off if they are fully dependent on farming and have no other source of income.

The key demands made by included a minimum support price for all farm produce, 100% subsidy on drip irrigation equipment, better facilities for storage and transport of crops besides loan waiver.More
Posted on: 2017-06-13 05:46:39

The Government plans to introduce schemes to provide interest free loan to women’s Self Help Groups (SHG) in order to assist them to purchase vehicles and hire drivers. This would improve the connectivity in remote villages where these vehicles would serve as public transport to the villages not connected to the main town by any transport service.

The rationale behind this scheme is to ensure that farmers carry their farm produce to markets for sale which is a source of their daily living.

This scheme is proposed to be launched on Independence Day and will be part of the ongoing National Rural Livelihoods Mission which promotes interest free loan to women’s SHG. This would encourage means of self-employment for women by plying transport in backward blocks.

The initial calculations show that this project will be economically viable based on the transports and expenditure incurred on fuel and the driver. Estimates suggest that based on 6-7 trips to be undertaken by a 10-12 seater vehicles in a day show that the SHGs would have a positive balance after spending money on fuel and driver and repaying the principal amount on the loan to buy vehicles costing in the range of Rs 6.5-8.5 lakh.More
Posted on: 2017-06-11 18:34:06

The BJP farmers wing stated that over 27 lakh marginal farmers will benefit from the loan waivers scheme as proposed by the state government.

Dnyanoba Munde, head of the BJP Kisan Morcha also stated that this is a historic decision that would offer big relief to the debt-ridden farmers of the state. He also expressed his displeasure that some farmers still continued their agitation despite all the help announced by the government.

"The BJP government has implemented more number of welfare schemes and measures for farmers. Right from offering agricultural aids to offering good prices to agricultural produce, the government has always taken pro-farmer stand," he said.

He also clarified that the CM’s landholding criteria of 5 acre for terming a farmer as marginal was not rigid and farmers who owned few ‘gunthas’ of land in addition to 5 acre would also be entitled to benefits.

The CM has also announced the enacting of a legislation in July to make purchase of farm produce below the minimum support price a criminal offence and setting up a commission for agriculture costs and prices. The proposed loan waiver scheme would benefit farmers whose crop credit had turned outstanding in 2012 and later.More
Posted on: 2017-06-11 18:30:27

The Securities and Exchange Board of India (Sebi) has asked three private sector banks – Yes Bank, Axis Bank and ICICI Bank, for an explanation after they reported bad loans that diverged widely from the assessment of the Reserve Bank of India (RBI).

The National Stock Exchange of India Ltd has also sought an explanation from Yes Bank on the divergence and may additionally seek responses from Axis Bank and ICICI Bank.
Yes Bank replied by stating that it has complied with all relevant listing regulations and adhered to the RBI circular. Axis Bank also stated that it had responded to Sebi’s queries. ICICI Bank has not yet made any statement regarding the divergence.

The Bombay Stock Exchange has incidentally found the disclosures made by the three banks in their annual reports to be adequate.

As per Sebi’s listing obligation and disclosure requirement norms, all material information needs to be disclosed and any variation in numbers needs to be qualified by auditors followed by an explanation from the management and the opinion of the auditor. Experts said the issue of different interpretation of disclosures by the two exchanges is based on audit reports not being qualified.More
Posted on: 2017-06-11 18:29:08

The government is planning to lower the interest rate on the loan of Rs. 1,000 crore given to Kochi fertilizer firm, Fertilisers and Chemicals Travancore Ltd, (FACT) by the Government of India. The loan was given for the expansion and redevelopment of the production capacity to one million tonnes this fiscal year.

The fertilizer firm is facing a liquidity crunch and produces about 6 lakh tonnes of NPK fertilizers such as aluminium sulphate with an annual turnover of about Rs 2,000 crore.
Ananth Kumar, Union Chemicals and Fertilisers Minister stated that “FACT is asking for reduced interest rate on Rs 1,000 crore loan that the Government of India has sanctioned. We are actively considering it.”

FACT has to repay the loan amount along with interest in five years, with a moratorium of one year. The loan is being used for working capital requirement, clearing its pending dues and maximising capacity utilization.

The minister also said the revival package does not mean only providing monetary assistance, but also facilitating many other aspects of the business and ensuring better performance.
FACT is the country’s first fertilizer plant. Its revival and capacity expansion would boost supply in Kochi and entire South India.More
Posted on: 2017-06-02 14:48:16

The Aurangabad Municipal Corporation is looking out to secure a bank loan to fund a drainage project although it will have to mortgage some of its properties to secure the loan.

The civic body is in need of Rs. 98 crore to complete its up-gradation of its drainage system. Many contractors have suspended the work scheduled as the body has been delaying payments of their bills. They have been assured of part payment after which many contractors resumed their work.

The body is planning to mortgage some of their properties at prime locations a security for the loan from financial institutions. The cost has increased due to additional work such as construction of secondary and tertiary drainage lines apart from other modifications. The earlier estimation of the project was fixed at Rs. 365 crore.

The civic body has earlier planned mortgaged its prime location properties in 2014 when it launched the public – private partnership model water distribution project. Faced by backlash over mortgaging land of the Shivaji Maharaj museum, they had to drop the idea. It remains to be seen what properties the body will mortgage as properties with clear titles is not in abundance.More
Posted on: 2017-05-29 12:24:12

Karnataka Chief Minister Siddaramaiah has urged the state-run banks and cooperatives to grant fresh loans to farmers amidst the severe draught being faced across the state.

A State Level Bankers’ Committee meeting was held in Bengaluru where the Chief Minister stated that “There is an urgent need to financially assist the farmers to mitigate their hardship, as 139 local bodies (sub-districts) during the 2016 kharif season and 160 local bodies for the rabi season were declared drought-hit across the state.”

The Chief Minster hold the finance portfolio in the state and while projecting the annual credit plan for this fiscal (2017-18) at Rs 1,60,020 crore, he also regretted that the targets set for a similar plan in the last two fiscals 2015-16 and 2016-17 were not achieved under the education and housing loan portfolios.

The disbursement under the housing loan portfolio declined to Rs 5,916 crore in 2016-17 from Rs 9,061 crore in 2015-16. The disbursement under the education loan also declined to Rs 1,639 crore in 2016-17 from Rs 2,248 crore in 2015-16. The banks have achieved only 80 per cent of the target set for crop credit disbursement for 2016-17.More
Posted on: 2017-05-29 12:23:15

The Punjab government seeks to provide financial benefits to the poor farmers in the state and consequently has directed its district central cooperative banks to broaden their loan portfolio to provide maximum benefits to the farmers.

This step was undertaken during a review of the annual performance analysis of various state cooperative banks. It was directed that the business of the banks should not be curtailed and various kinds of loaning services must be provided to the needy farmers in a transparent manner.

Many problems are being faced by the poor farmers and the role of cooperative banks cannot be undermined in helping the farmers by providing them soft loans at reasonable interest rates. Banks were also advised to counsel the distressed farmers against taking extreme steps like suicides. It was stated that banks should hold meetings and workshops at the village levels and invite expert speakers to counsel farmers on this subject. Farmers were to also be counseled against taking loans from unorganized money lenders as this forces them to take extreme steps upon non-repayment.

At this annual meet, managing directors and district managers presented performance analysis of their respective banks for the year 2016-17.More
Posted on: 2017-05-25 12:36:56

In a bid to help the farmers, the Arunachal Pradesh government has decided to provide zero interest crop loan to farmers of the state. This in turn would provide the farmers with easy access to formal credit through banking channels.

The State Finance Department released a notification which stated that the government has launched the Chief Minister’s Krishi Rinn Yojana (CMKRY) to provide interest subvention of four per cent on crop loan/kisan credit card limit up to Rs 3 lakh sanctioned by all banks to all farmers of the state during the current financial year. This interest subvention is over and above the subvention given by the Centre to banks and the farmers as per policy issued by RBI and NABARD.

Upon repayment, the farmers will get an interest relief at the rate of 3 % per annum within one year of disbursement and drawal of such loan. Farmers who avail of loans up to Rs. 3 lakh and who make timely repayments will get zero interest credit facility.

The notification said NABARD will act as channel partner for reimbursement to banks against interest subvention amount claims in prescribed format.More
Posted on: 2017-05-23 12:56:33

Small and marginal farmers are approaching banks to take bank loans against their gold jewellery for their next paddy crop expenses. The reason for opting for gold loans as against the traditional cash crop limit is the hassle free procedure in availing loan against gold.

Due to the rise in the Non Performing Assets (NPAs) in the agricultural sector along with the loan waivers being announced by state cabinets, the banks have become reluctant in advancing large amount of loans to farmers as they fear that the loan may become NPAs in the future or may be waived off.

Farmers are more comfortable with keeping their ornaments in the custody of banks and availing a loan on them rather than keeping them in lockers as they fear breaking of lockers and losing their jewellery.

The borrower farmer has to prove his identity and produce proof of his profession for availing loan against gold. Availing loans or advances under the cash crop limit scheme is complicated for majority of the farmers who are now flocking to taking advances against their gold. Many farmers who earlier disposed off their jewellery are now resorting to keeping them as security and availing loan on them.More
Posted on: 2017-05-21 08:10:24

Axis Bank announced today that it is cutting its home loan rates by up to 0.30 %. The rate of home loans under Rs. 30 lakhs by salaried borrowers has been cut by 0.30% to 8.35%. This step has been taken keeping in line the cuts announced by the largest lending bank, SBI which cut its rates by up to 0.25% for loans under Rs. 30 lakhs. Other leading banks such ICICI Bank and HDFC have also cut their rates to bring it at par with SBI.

Since no gender was specified by Axis Bank, it is presumed that all salaried borrowers will get the same home loan rate of 8.35%. Other bank, such as ICICI and SBI give additional incentive to women borrowers such as around 0.05% as compared to men.

Axis Bank stated that there is a large, genuine and unmet need for affordable housing and cutting rates will help people to realize their dreams of owning a home.

Credit growth for the system came in at a multi-decade low of 5 per cent in FY17. Loans to the affordable housing segment also qualify as priority sector lending and help banks meet the mandatory requirements.More
Posted on: 2017-05-19 12:00:29

The Maharashtra government has formed a committee of 11 members to give recommendations on helping out the debt ridden farmers by providing them loans.

The committee is headed by the Additional Chief Secretary (Finance). A deadline has not yet been given for the submission of this report. The committee also has General Manager Reserve Bank of India, Additional Chief Secretary (Planning), Principal Secretary of Agriculture, Divisional Commissioner of Pune, Cooperation Commissioner and Registrar Cooperative Societies, Chief General Manager NABARD and others as its members.

The problem being faced by the farmers is that they are debt ridden and on defaulting, they become ineligible for a fresh agricultural loan. A Government Resolution was issued in this regard on May 11.

There are around over 27 lakh farmers who are still out of the institutional credit system and such farmers need to be brought back to the credit system, it said.

Chief Minister Devendra Fadnavis stated in the budget session that the government wanted to place a system for 1.34 crore account holder farmers who have repaid their loans. He also stated that the government will have to bear a burden of Rs 30,500 crore if it waives loans of 31 lakh farmers.More
Posted on: 2017-05-18 12:40:11

To meet the competition, ICICI Bank which is India’s largest private sector bank slashed the interest rates for home loans by up to 30 basis points for borrowers availing home loans up to Rs. 30 lakhs. HDFC Bank also slashed its interest rates by 30 basis points to match with ICICI Bank and SBI.

ICICI Bank lowered its interest rates to match the rates being offered by SBI and LIC Housing Finance. The reduced rate will come into effect from 15 May 2017 for new borrowers. They can also choose to link their home loans with I-MCLR-6 months or I-MCLR-1 year.

This is very beneficial for salaried borrowers who can now avail home loans at among the lowest rates in the industry. Salaried women borrowers will get home loans at 8.35% and others at 8.40%. In both these cases, the reduction in interest rates is 30 basis points from the previous rates.

Customers taking home loans in the affordable segment also have the option to select the type of interest rate. They can either chose a floating interest rate or a fixed interest rate for the initial two/three years followed by floating rate.More
Posted on: 2017-05-16 05:50:48