My crop failed this year and I cannot repay the KCC on time. I do not want to become a defaulter. What are my options?
What happens to my crop loan and KCC if my crop fails, can it be restructured?
MMangal Singh5mo ago · 189 views
6 Answers
🌾Farmer.in Krishi TeamExpert ✓5mo ago
When a notified natural calamity damages crops over a wide area, banks have RBI guidelines to give relief instead of pushing you straight into default. If the crop loss is severe, the bank can convert or reschedule your short-term crop loan into a term loan repayable over a few years, and grant a moratorium during which you do not have to pay, with fresh credit allowed for the next crop so you can carry on farming. This relief usually requires an official declaration of crop loss, commonly when the annewari, girdawari or similar loss estimate crosses a threshold, and it applies to the affected area, not just one field. Restructuring keeps your account from immediately turning into an NPA, though interest treatment varies. Act before the due date: tell your branch in writing about the loss and ask for restructuring under the natural calamity guidelines, and check whether a state relief or input subsidy also applies. Confirm the current relief norms with your bank and revenue office.
HHarish Patil4mo ago
Sukha pad ne par maine branch ko likhit me bataya. Unhone loan ko term loan me convert kar diya aur agli fasal ke liye naya loan bhi mila. Due date se pehle baat karna zaroori hai, baad me mushkil ho jati hai.
HHarish4mo ago
Sukha pad ne par maine branch ko likhit me bataya. Unhone loan ko term loan me convert kar diya aur agli fasal ke liye naya loan bhi mila. Due date se pehle baat karna zaroori hai.
BBaburao Shinde4mo ago
In our area the restructuring needed an official loss declaration through annewari, so I followed up with the revenue office to get the loss recorded. Without that the bank could not give relief. Apply for the natural calamity relief in writing and also check for input subsidy.
TTukaram Mohite4mo ago
Due date se pehle branch ko likhit me application dena sabse zaroori hai, kyunki ek baar account NPA ho gaya to restructuring mushkil ho jati hai. Maine fasal kharab hote hi turant likh kar diya aur receiving copy rakhi. Zubani baat ka koi record nahi rehta, isliye sab kuch kaagaz par karo.
AAnna Saheb Kale4mo ago
One thing to be clear about is that restructuring is not a waiver, the loan is converted into a term loan and you still repay it over a few years, often with interest. So check the new repayment schedule and whether interest keeps running during the moratorium before you assume it is relief. Also ask separately about any state input subsidy or calamity relief, that is a different benefit from the bank restructuring. Confirm the terms with your branch and revenue office.