Banks told to restructure farm loans

New Delhi, Aug 3 | Updated: Aug 4 2005, 05:30am hrs
Concerned over increasing number of suicides by indebted farmers, government has taken several measures including asking banks to restructure their debt and provide fresh loans at cheaper interest rates.

To free farmers from the clutches of private money lenders, government has asked banks to increase agricultural credit by 30% per annum and provide loans at single digit interest rate of not more than 9% on crop loans. Banks are asked to restructure outstanding debt of farmers in distress and farmers in arrears, an official release said.

For farmers in distress, the outstanding loan of the farmers as on March 31, 2004 in the districts declared as calamity shall be repayable over a period of five years at current interest rates, he said.