Table of Contents
- 1 What is a waived loan?
- 2 Do you think loans should be waived off in case farmers find it difficult to pay?
- 3 What is an exemption waiver?
- 4 Under what circumstances farmers are unable to pay back their loan?
- 5 Are Farm Loan waivers good or bad for the economy?
- 6 What is the impact of loan waivers on the credit flow?
- 7 What is the importance of farm loan waiver for UPSC Mains?
What is a waived loan?
As mentioned before, waiving a loan means that the lenderLenderA lender is defined as a business or financial institution that extends credit to companies and individuals, with the expectation that the full amount of will no longer ask for repayment from the borrower.
Do you think loans should be waived off in case farmers find it difficult to pay?
Explanation: In my opinion yes it should be written off. However, it has disadvantage too that those farmer who are in position to pay but reluctant to pay as they know at last government will write off will lead to a loss for the government.
What is the difference between a waiver and an exemption?
As nouns the difference between waiver and exemption is that waiver is the act of waiving, or not insisting on, some right, claim, or privilege while exemption is an act of exempting.
What is an exemption waiver?
A waiver of exemption is a clause in a contract that allows a creditor to seize property that state laws may exempt from seizure.
Under what circumstances farmers are unable to pay back their loan?
Farmers say they are unable to repay loans in the background of rising fertilizer prices, and an unstable market for farm produce due to the lockdown. “Since 2019, we have not got remunerative prices for any of the crops, including cash crops such as sugarcane, oil seeds and tobacco, due to the lockdown.
What is a waiver used for?
A waiver is a demonstration, usually in written form, of a party’s intent to relinquish a legal right or claim. The key point to note is that the relinquishment is voluntary, and can apply to a variety of legal situations. Essentially, a waiver removes a real or potential liability for the other party in the agreement.
Are Farm Loan waivers good or bad for the economy?
Farm loan waivers are Bad Politics – Bad Economy, because often these things are announced just before elections to attract voters and to get their votes. And generally the government do not work much on implementing long term solutions to the agricultural crisis. And hence it is the Bad Politics.
What is the impact of loan waivers on the credit flow?
Even though, farm loan waivers are given to reduce the distress among farmers, the loan waivers can also have a negative impact on the credit flow because it creates distortions in the credit market since repeated waivers encourage default among the farmers. It also increases the NPAs (Non-Performing Assets) of banks. What is a loan waiver?
What is Agri Agri loan waiver scheme?
Agricultural debt waiver scheme was first implemented in 1990. Then, Rs.10,000 crore worth farm loans were waived off. From then loan waivers are implemented multiple times by many governments. In India, results of crops highly depend on monsoons. Farmers invest heavily on crops by taking loans.
What is the importance of farm loan waiver for UPSC Mains?
In the recent past, widespread demands have been heard for farm loan waivers amid continuing agrarian distress. hence, it holds importance for UPSC Mains. IAS Exam aspirants can find more notes for UPSC Mains General Studies topics from the links given at the end of the article.
https://www.youtube.com/watch?v=aKOrpG0pZRI