Farmers wilfully defaulting on loans in hope of waiver

  |   India News

Several bankers TOI spoke to confirmed that there was a rising trend of farmers refusing to clear dues, an issue that was also flagged at a meeting on Monday convened by the finance ministry.

While it is early to quantify the extent of loan delinquency by farmers, bankers say that in some states, the default rate has increased by up to 50% in recent months. "Farmers are emptying their bank accounts so that we cannot deduct the payment due from them," the head of a large bank told TOI.

At least two bank chairmen said they were finding it tough to get dues from Andhra, which had waived loans of over Rs 40,000 crore after N Chandrababu Naidu won the assembly polls in 2014.

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