The farmers who have taken gold loans from PSU banks in Andhra Pradesh are feeling dejected as the Gold loan waiver scheme is not beneficial to them. The banks have been started issuing auction notices to the farmers who have not repay the gold loans. The lakhs of farmers are in dismay over the issue as they have to pay the huge amounts with about 18 percent interest on the gold loans.
It is estimated that about 18 lakhs applications for gold loan waiver have been rejected by the Government of Andhra Pradesh. The Govt has cited that reasons that the gold loans have not been taken for the agricultural purpose and the amounts have been used by farmers for non - agricultural purpose.
The Government of AP may save about Rs. 15000 crores with the rejection of 18 lakhs gold loan waiver applications for farmers in the state. Farmers are dejected after finding online that their applications are not eligible for the gold loan waiver scheme.
The lakhs of farmers have taken gold loans with out submitting copies of pattadar pass books. All these loans are considered as gold loans for non - agricultural purpose. But the fact is that the pass books are not issued for lakhs of farmers due to lack of proper revenue records in the state.