Waiving dead farmers’ dues helps heirs get loans

Nagpur: The state’s loan waiver scheme helps banks recover pending dues of the farmers’ no longer alive. In the first list of eligible farmers released in Nagpur division, there were at least seven persons who are no more. Four were from in Wardha and three from Nagpur, said sources.
As the case was referred to higher ups by the district officers, it was clarified that the legal heirs of the farmers could register themselves. The dead borrower’s Aadhaar number will be replaced by that of the heirs. After that, the amount will be repaid to the bank by state government, said a source.
This will help the survivors clear the charge on the land they inherit. However, it will not bring any cash benefit to the relatives because the amount will directly go to the bank. The process has nothing to do with the inheritance of the property either, said an officer handling the waiver cases.
Once the list is out and the borrower is dead, the legal heirs can report the matter and replace the Aadhaar number so the amount is credited to the loan account. The provision was there in the waiver scheme of previous government too.
The MVA scheme covers loans up to Rs2 lakh. On the basis of the first list, farmer will have to provide biometric matching for their Aadhaar numbers provided to the bank. Aadhaar is taken at the time of granting loans as a part of know your customer (KYC) norms, said a source.
In the scheme launched during BJP regime, the farmer was suspposed to apply for the waiver. In case the borrower had died, the heirs could apply on the person’s behalf after going through the verification process, an official said. BJP scheme waived loans upto Rs 1.5 lakh and there was a one time settlement scheme for higher amounts.
In the Nagpur division data for over 2.4 lakh farmers’ loan accounts where repayment is due have been uploaded in the system. Of these, Aadhaar verification has happened in more than 40,000 accounts.