State cabinet approves waiver of co-op loans up to Rs. 1 lakh

• Safeguarding farmers’ interests is his government’s first priority tweets CM

Bengaluru: Karnataka State Cabinet has approved the waiver of short-term crop loans up to Rs 1 lakh borrowed from cooperative banks on Thursday, August 9^th. The decision follows state government’s promise in the state budget on July 5^th and is expected to cost the exchequer Rs 9,448.61 crore.

After reports emerged of a number of suicides in the state in spite of the announcement of a loan waiver, CM Kumaraswamy appealed to farmers in the state to not resort to suicide. The waiver comes in the first phase of CM HD Kumaraswamy’s loan waiver scheme to alleviate the troubles of farmers in the state.

“Dear Farmers, please don’t resort to suicide. It’s my promise to you that this govt will save you from economic distress. Safeguarding #Farmers’ interest is our first priority. The cabinet approved the first phase loan waiver scheme today. #Loanwaiver will benefit all farmers,” tweeted Kumaraswamy.

Conditions to avail loan waiver

There are several conditions attached to avail loan waiver. It will not be applicable to government or private employees earning Rs 20,000 salary or pension per month. It will also not be applicable to those who have paid income tax in one of the last three years and for farm equipment and for mortgaging vehicles.