Banks blacklist loan waiver beneficiaries

VV Balakrishna
First Published : 13 Jul 2009 09:36:39 AM IST
Last Updated :

HYDERABAD: There is an unofficial moratorium on sanctioning of fresh crop loans to farmers who got complete loan waiver in the State last year. Bankers have blacklisted a majority of the farmers who had failed to repay loans and got relief from the government.

Last year, a record 63.41 lakh small and marginal farmers got complete loan waiver to the tune of Rs 11,354 crore in the State. Farmers having more than five acres got Rs 20,000 relief while the others got a waiver of 25 per cent of the loan amount.

Several bankers are not coming forward to sanction fresh loans to ‘willful defaulters’ in the kharif season as they fear that the farmers who got loan waiver may default this time too and look for government’s assistance again, admits a bank manager. However, there are no written orders to this effect.

‘‘I have cleared my Rs 30,000 due 15 days ago but the bank manager is not issuing a fresh loan,’’ complains Gouda Alivelu of Uppununthala. Several farmers who repaid loans have the same complaint with the bankers.

‘‘Earlier, whenever I approached the bank for a crop loan, they sanctioned it within two days. But this year, I have been making rounds to the bank for the past 20 days without success,’’ Ramulamma, another farmer, alleges.

‘‘We are not giving priority in sanctioning fresh loans to the farmers who got relief from the government,’’ a branch manager of AP Grameen Vikas Bank, pleading anonymity, told Express.

Issuing loans to new farmers is the government’s top priority this year.

Taking advantage of this, the bankers are looking for new loanees and avoiding those who had benefited from the loan waiver.

However, the Andhra Bank general manager, attached to State-Level Bankers Committee (SLBC) wing, told Express that there was no ban on issuing crop loans to farmers who got the loan waiver. However, he admitted that managers of some branches may not issue loans to ‘willful defaulters’.

Confessions of a banker

‘‘We are not giving priority to the farmers who got relief from the government,’’ a branch manager of AP Grameen Vikas Bank, pleading anonymity, told Express. An Andhra Bank general manager, attached to State-Level Bankers Committee (SLBC) wing, however, told Express that there was no ban on issuing crop loans to farmers who got the loan waiver. Nonetheless, he admitted that managers of some branches may not issue loans to ‘willful defaulters’