Puducherry Government on 26 September 2016 decided to write off all farm loans taken from co-operative Banks in the Union Territory. As per the decision, the principal loan amount, interest and penal interest of all farmers will be waived off.
The measure will cost the state Exchequer 20 crore rupees and benefit about 7000 farmers of the Union Territory.
The decision was taken during the cabinet meet. It is based on the poll promises of the Congress-DMK government.
The cabinet also approved to write off penal interest on Housing loans availed from Co-operative Banks. Those who had availed loan from the cooperative housing federation are prepared to repay the principal amount as well as the interest, if the penal interest is waived.
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