On the day when the results of the 2019 Lok Sabha Election will be announced on May 23rd. We don’t know who is going to reap the victory on that specific day better than the farmers of Karnataka. Kumarasamy led Karnataka Govt has announced that the arming loans obtained by 1.5 lac farmers in Karnataka worth Rs.900 crores will be waived off.
It must be mentioned that the government of Karnataka has already waived of the loans o 15.5 lac farmers that are worth over Rs. 7417 Crore and since it was announced by the Election Commission that there should not be any further loan waiving until the elections are over, the govt had paused this process.
So on May 23rd, the indebted farmers of Karnataka can rejoice but this is not a good news to the banks. We have seen in the immediate past and in the present that there has been many unpaid debts by business tycoons and individuals alike in several banks in India and sudden loan waiver of heavy sum will only affect the banks.