Raitara Sala Manna 2018 |Farmer Loan Waiver Scheme in Karnataka 2018


CM Farmer Crop Loan Waiver Scheme in Karnataka 2018-19 [Raitara Sala Manna In Kannada] [Registration Form, Application Process, Eligibility Criteria, Documents] Farmers’ List @raitamitra.kar.nic.in

The current state government of Karnataka has just announced the state budget. Apart from several other developmental schemes, stress has been given on bringing about betterment of farmers. For this, it has announced a new Farmer Loan Waiver Scheme that will be launched and implemented as soon as possible. All farmers, who have taken loans for agricultural needs will be able to apply for this waiver scheme.

Farmer Loan Waiver Scheme in Karnataka

Launch details

Name of the scheme Farmer Loan Waiver Scheme
Launched in Karnataka
Date of announcement  2018
Launched by HD Kumaraswamy, CM
Targeted beneficiaries Poor agricultural workers
Farmers’ Official Portal http://raitamitra.kar.nic.in/

Key features of the scheme

  1. Development of state farmers – The announcement of this new scheme has been done to address the issues of farmers. It will offer them respite from the burden of paying agricultural loans.
  2. Amount to be waived off – The state CM just announced that it will offer an agricultural loan waiver of as much as Rs. 2 lakhs. It will release a lot of burden from the shoulders of the agricultural labors.
  3. Encouragement for nondefaulters – It has been mentioned in the scheme that all farmers, who have never missed any loan repayment installment, will be given Rs. 25,000 as an encouragement. In case some portion of his loan is still unpaid, and if it is within Rs. 25,000 mark, then state government will pay it on their behalf.
  4. Lessen government expenditure – There are no extra points for guessing that the implementation of this project will put a huge pressure on the state revenue department. The CM mentioned that state authority will cut down on unnecessary expenditures to make financial provisions for this scheme.
  5. Increase in excise duty – The stare government will bring about a hike in the existing excise duty amounts. The additional money thus collected, will be used for paying the agricultural loan waiver scheme.
  6. Hike in product cess – It has been stated in the budge that from now on, people will have to pay 9% tax for power consumption. It was 6% previously. Apart from this Rs. 1.12 per liter diesel and Rs. 1.14 per liter petrol will also be increased for gathering enough funds for the far, loan waiver scheme.
  7. State expenses – Estimates suggest that the state government will have to tolerate an expenditure of Rs. 34,000 crore for waiving off loans of all farm workers.
  8. Total number of beneficiaries – As per recorded details, 17.32 lakh agricultural workers will be able to get their entire credit waived off, while 27.67 lakh agricultural labors will receive Rs. 25,000 as an encouragement for returning loan installments on time.
  9. Money to be paid to the bank – In order to waive off the loans of so many farmers, the state government needs to pay a whopping Rs. 34,000 crore to the banks.
  10. Distribution of loan waiver certificates – It has been announced that the state authority will start the task of distributing farm credit waiver certificates to selected farmers from August 2018.

Eligibility of the scheme

  1. Resident farmers of Karnataka – The benefits under the project will be available to those agricultural labors only who are permanent and legal residents of Karnataka.
  2. Loan limit – Only those farmers will be able to apply who have taken an agricultural credit that is less than or equal to Rs. 2 lakhs.
  3. Credit application date – Only those applicants will be able to reap the benefits of the scheme who have taken the credit between 1/04/2009 and 31/12/2017.
  4. Poor farmers only – It is estimated that like other loan waiver schemes, this one will also allow enrollment of small and marginal farmers.
  5. Nonpayment of income tax – All such farmers who have not paid any taxes for last three years constantly, they will not be allowed to get the benefits under this scheme.
  6. Loan taken from government and cooperative banks – The state government will only consider the application of such applicants who have acquired the loan from any nationalized bank or any cooperative financial institution.
  7. Not for government employees – In case any member of the farmer’s family is associated with any government office, then he will not be allowed to receive this farm loan waiver scheme.
  8. Not for cooperative employees – Those farmers will be barred from applying for this scheme that have any member of their family professionally involved with the cooperative sector.
  9. Not for elected representatives – In case the borrower is an elected representative in the village, then he will be unable to apply for the scheme.
  10. Jewelry or property loan – All the agricultural labors who have taken the loan against any property, automobile or jewelry will not be allowed to apply under the loan waiver scheme.

Documents required for application

Though the entire list of documents, required for the application process has not been revealed, one can clearly say that the following papers will be made compulsory:

  1. Residential documents – As the scheme will be implemented in Karnataka, it will be mandatory for all applicants to submit their residential documents. It will ensure that they are permanent and legal residents of this region.
  2. Aadhar card – To support the identification claims, the applicants need to attach proper documents. The Aadhar card is one document that has to be submitted to attain the benefits of this scheme.
  3. Credit related papers – As there is a credit limit, applicants need to offer copies of their agricultural credit acceptance papers.
  4. Bank account details – As state government will transfer the subsidy amount, for non-defaulter agricultural labors, into their bank accounts, they need to offer all ban account related information.
  5. Farmer registration documents – As the scheme is targeted towards agricultural workers, applicants need to provide necessary documents to ensure that they are associated with farming as their primary occupation.

How to get application form?

Nothing specific has been mentioned about the application form or the actual process. The method of getting the application forms will depend on the enrollment process. But it is too early to come to any conclusion now. Common people will receive the details in due time.

How to apply for the scheme?

The scheme has just been announced in during the presentation of Karnataka budget. Only few important details have been divulged as of now. Thus, it is too early to say anything about the application process. The state authority will notify the people as and when new updates are made from the government’s end.

Budget for the scheme

In the state budget, the new CM announced that the farmer crop loan waiver scheme will require as much as Rs. 6,500 crore. This amount will be utilized for waiving off the credits of all those farmers who borrowed money for agricultural purposes.

The common people and farmers of Karnataka expect a lot from the current government. This alliance government has already taken the first step towards keeping its promises of lessening the burden of crop loan from the shoulders of farmers. Now, one has to wait and see when the actual implementation starts.

Update – 


In Bengaluru, Chief Minister HD Kumaraswamy made an announcement that state will take necessary steps to waive of the loan. To meet the financial requirements, the state authority will have to pay a whopping 26,000 crore. Under this project, the state will make sure that the agricultural workers get respite from the burden of paying for their agricultural credits.

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