Last updated: December 17th, 2019 5:06 PM

Karnataka Crop Loan Waiver Scheme

The Government of Karnataka has introduced a crop loan waiver scheme to provide loan wavier relief of up to Rs.2 lakhs for the poor and marginalised farmers. The scheme intends to provide financial support to the drought-hit farmers in the state. In this article, we look at the Karnataka crop loan waiver scheme in detail.

Features of the Scheme

The following are the features of the scheme

• To grant financial assistance to the debt-ridden farmers.
• To reduce farmers debt.
• To provide current loans to the farmers for the forthcoming sowing season.

Highlights of the Scheme

The following are the highlights of the housing scheme.

• The loan amount will be distributed to the eligible farmers in four phases.
• The amount of Rs.10,500 crore is allocated in the budget 2018-19.
• The amount of Rs.6,500 crore is allocated for the farmers to get an initial loan from the banks for agricultural activity.

Eligibility Criteria

The eligibility criteria for applying crop loan waiver scheme are listed below.

• The farmer must be a citizen of Karnataka state.
• The farmer must have taken a loan only for the agricultural purpose.
• The farmers family members should not a government or private sector employee.
• Loans under Rs.2 lakh only would be waived off.
• The loan taken by the farmer must be from a primary agricultural credit co-operative society.

Documents Required

The following documents are to be produced at the time of registering under this scheme.

• Resident certificate.
• Income certificate.
• Aadhar card.
• Bank passbook.
• Passport size photograph.
• Loan statement.
• Documents related to land.

Budget of the Scheme

In the state budget, the Karnataka Government has announced that the crop loan waiver scheme will require Rs.6,500 crore. This amount will be utilized for waiving off the loans of all those farmers who borrowed money for agricultural purposes.

Application Procedure

As the scheme has been launched recently by the state government of Karnataka, the application process is yet to be announced.