The decision was taken at a cabinet meeting on Wednesday, partly fulfilling a promise made by the ruling coalition ahead of the 2019 parliamentary elections.
The government said an allocation of Rs 2,000 crore has been made in the current financial year for the waiver.
The ruling coalition had pledged to waive agricultural loans of up to Rs 2 lakh, ahead of last year’s parliamentary elections, if elected to power.
Finance Minister Rameshwar Oraon of Congress told PTI that his government has decided to extend the benefit of loan relief to marginal farmers in the first stage, and in the second and third phases, the government will try to waive the loans. loans up to Rs 1 lakh and Rs 2 lakh, respectively.
Farmers who have availed agricultural loans of up to Rs 50,000 from any bank till March 31, 2020 will be eligible for the waiver, officials said.
It has also been decided that under the scheme, the loan of only one person from a family will be forgiven, they said.
Farmers applying for loan forgiveness would be charged a service fee of 1 re. The exemption amount will be transferred directly to farmers’ bank accounts, they said.
Chief Secretary Sukhdev Singh told PTI that around 9 lakh farmers in the state will benefit from the move.
JMM spokesperson Supriyo Bhattacharya said the decision to forgo agricultural loans had been delayed due to the COVID-19 pandemic.
However, by taking the decision before the first anniversary of the Hemant Soren government, the intention to help the farmers has been clarified, he added.