Farm loans are loans taken from the banks by the farmers for agriculture requisites and production. In a farm loan waiver scheme, the Centre or the state Government repays the loan to the banks on behalf of the farmers, simply by using public money collected in the form of taxes.

When there is a poor monsoon or natural calamity, farmers cannot repay their loans. The political party uses this problem during election time and promises loan waiver in their manifesto.

So, whenever there is a lethal combination of Drought, farmer suicides, and political uncertainty in India the topic of Farm loan waiver becomes the battlefield between opposition as 60% of the Indian population mostly bank on farming Income.

A loan waiver benefits individual farmers but on the other hand, it can gobble India’s growing economy and banking sector. Let's discuss Farm Loan Waiver – A temporary solution to a permanent problem.