In view of a massive destruction from recent floods, all banks including cooperative banks in Kerala will not ask for repayment of interest on crop loans for a period of one year, reports Business Line.
Kerala Bankers Committee has taken this decision in response to a request made by the State Agriculture Minister, VS Sunil Kumar.
The banks will also not invoke the SARFAESI ACT to attach the properties for default on crop loans drawn by farmers.
As per a rough estimate, over 46,000 hectares have been destroyed by the floods causing a loss of Rs 1,050 crore to more than 2.8 lakh farmers.