Govt to extend loan term, but farmers want waiver scheme

Farmers in the state of Karnataka are demanding that the government implement a farm loan waiver scheme due to drought and crop losses. The government has asked banks to restructure farm loans, extending the tenure of short-term loans by a year and medium and long-term loans by five years. This is in line with RBI guidelines for rescheduling farm loans in drought-hit areas. However, farmers’ organizations say that extending the loan tenure is not enough and are calling for a complete loan waiver.