Andhra Pradesh Government is moving fast in solving the Loan Waiver scheme. The Government had already readied 6500 Crores for the scheme and is trying to pool in another 4000 Crores. The total 10500 Crores will be forwarded to the banks as the first installment. With this amount, every loan below 50000 will be waived off and other loans will be waived till 50000.
There are total 80 Lakh Loan Accounts and 36% of the accounts are less than 50000. With this payment, Farmers will be able to get fresh loans from the banks. Government is thinking on the lines to issue bonds worth one Lakh to remaining farmers. These bonds will have a lock-in period up to one year and will be giving 10% interest after the maturity.
If any farmer wants to encash it before the one year period, they will be given the amount deducting the interest. Government is planning a corporation for the issuing of bonds and will be provided with equity of 5000-10000 Crores. Since forming a corporation will be taking time, Government is thinking on the lines of changing the name of any existing corporation and use it for this purpose.
The entire guidelines of the scheme will be decided and announced by the Chief Minister on Monday.