Punjab State Cooperative Agricultural Development Bank has announced a major relief on Wednesday to provide relief to the farmers in distress. The bank has announced the introduction of a loan restructuring scheme for farmers. Under this scheme, farmers who have defaulted in repayment of loan will be able to repay their loan in easy installments.
Punjab Cooperative Minister Sukhjinder Singh Randhawa said that the bank has started a debt loan restructuring scheme for farmers who were defaulters while repaying loans. This scheme is for those farmers who could not pay the loan installment due to financial constraints. The minister said that under the scheme, the accounts of the defaulting borrower have been restructured so that they can easily repay the loan amount in installments and the bank can keep a soft hand on the legal procedures that it has to follow for extracting the money.
He also said in the statement that if the borrower pays 20 percent of his outstanding balance at the time of restructuring, then any remaining interest due on the penalty would be let off. Not only this, if the farmer regularly pays one-third of his restructured loan, then he will also be able to get a new loan in future without any restrictions
Randhawa said that the bank has also decided to provide a six-month exemption for unpaid loan installments on standard loan accounts due to the Covid-19 pandemic. The Minister said that this will benefit those borrowers who have not been able to pay their installments and they will get six months buffer time to re-pay them.
Registrar of Co-operative Societies, Vikas Garg said that the bank has also decided to extend the penal interest exemption scheme by 31 March 2021. Under this scheme, if the borrower pays off his entire outstanding debt or closes his loan account, then the entire interest amount penalized on his loan account would be let off.