The total quantum of Karnataka’s flagship crop loan waiver scheme has finally settled to around ₹18,000 crore, which is way below the initial claim of ₹43,000 crore when the scheme was announced in July 2018. The loan waiver entailed writing off up to ₹1 lakh loan in the cooperative sector, up to ₹2 lakh in the commercial bank sector, and an incentive of ₹25,000 to those whose loan accounts have been regular in commercial banks. During processing of the application, officials found that there were 21.8 lakh loan accounts in the commercial sector with a total loan amount of ₹36,000 crore. Regular loan accounts were about 7 lakh, and overdue and restructured loans were 5.8 lakh and 6 lakh, respectively. The number of eligible regular accounts dropped to 3.11 lakh, number of overdue accounts and restructured loans dropped to 2.76 lakh and 2.82 lakh, respectively.

Source: The Hindu June 12, 2019 17:07 UTC