Scheme for Redemption of debts

To provide relief and to remove the debt burden of identified acutely distressed farmers who are under burden of debt from non- institutional sources (eg. Money lenders) by providing them loan for debt redemption.

Individual farmers who have raised loans from non-institutional sources.

Quantum of Loan	Term Loan upto the extent of indebtedness of the farmer to noninstitutional sources can be considered provided it is within 150% of Gross annual income of the farmer from all sources, subject to a maximum of ₹. 50,000/-. Cost of title investigation, mortgage, etc, if any, will also be included for arriving at the loan limit. Loan would be sanctioned only if it is sufficient to clear the entire dues outstanding from non-institutional sources.
Margin	Nil
Security	Clean Advance; Co obligation of spouse/adult children of the borrower to be obtained so as to ensure family pressure in not reverting to non- institutional borrowings again; Mortgage of landed properties
Nature of facility	Term Loan
Other Features	The eligible farmer should give a declaration indicating the source , amount of debt , debt creation source and other relevant details and undertaking letter that no borrowing would be made from Non Institutional sources during the pendency of loan, if loan is permitted.
Repayment Period	Loan is to be repaid within 5 years in quarterly/half yearly/yearly installments based on the income generation of the farmer.