Karnataka has offered to waive off 50 percent of the cooperative loans availed of by the state's farmers if the Central Government agreed to write off a similar percentage of loans sanctioned to them by nationalised banks.
"Our government is ready to waive off 50 per cent of the cooperative loans availed by farmers, provided the Union government too agrees to write off 50 per cent of the loan amount financed by nationalised banks," Chief Minister Siddaramaiah said in Bengaluru.
Farmers across the state have availed of loans totalling Rs 29,000 crore from numerous nationalised banks during 2014-15 and 2015-16.
Stressing that his government was committed to stop farmers from falling into a debt trap, CM said interest-free loans were provided to them and repayments deferred by one year due to two consecutive years of drought.
"Cumulative interest amounting to Rs 316.54 crore was waived off on cooperative loans availed up to September 30, 2015, by 2.07 lakh farmers," Siddaramaiah said.