Tamil Nadu: Ease new agriculture jewel loan rules, farmers urge RBI
In case of crop loss, low selling price, and natural calamity, farmers who were unable to repay the agri jewel loan would repay only the interest and extend the loan in anticipation of a good harvest in the next crop.;
MADURAI: Farmers sought assistance from authorities to ease the formalities proposed by the Reserve Bank of India (RBI) regarding the agriculture jewel loan, on Wednesday.
T Perumal, national vice president of Bharatiya Kisan Sangh, Vadipatti, Madurai, said farmers who avail agriculture jewel loans from the nationalised banks normally repay in full, on time, after a successful harvest.
In case of crop loss, low selling price, and natural calamity, farmers who were unable to repay the agri jewel loan would repay only the interest and extend the loan in anticipation of a good harvest in the next crop.
However, the farmers, who availed the loan, were facing difficulties due to recent changes made by the Reserve Bank of India, he said, and stressed the need to differentiate genuine farmers and those with commercial interests who exploit the system.
With new rules, we were asked to repay the principal and interest in total and re-pledge the jewel the next day to avail the loan, he said.
This has forced the farmers to resort to loan sharks, who camp in front of banks and charge a hefty sum of interest for a day to the farmers who cannot repay and want to renew the loan. This has added to the woes of the farmers.
Perumal requested the RBI Governor, Sanjay Malhotra, to restore the earlier method in the interest of farmers.
