The loan waiver is the abolition of the real or potential liability of the person or parties who have taken the loan through a voluntary act of the person or party who has made the loan. Examples of loan reliefs include Stafford Loan Ability in the United States and Debt Relief Disbursements and Debt Support Schemes in India.
Video Loan waiver
Pengampunan Stafford Loan
In certain situations, the United States Federal Government may override all or part of the education loan through the Stafford Loan Forgiveness program. Eligibility for the program depends on the borrower who meets certain service criteria after they complete their education. This can include any of the following:
- Voluntary work on federal programs such as AmeriCorps, Peace Corps, or Volunteers in Service to America (VISTA)
- Military services such as serving in the Army National Guard
- Full-time teaching in schools where most of their students come from low-income families
- Practice law for the public interest or non-profit organization
- Practicing medicine in remote, economically poor communities without adequate medical care
Maps Loan waiver
Release of Agricultural Debt and Debt Relief Schemes
On February 29, 2008, P. Chidambaram, at the time the Ministry of Finance of India, announced a package of assistance to farmers of honesty that included the complete disposal of loans granted to small and marginal farmers. Called the Release of Agricultural Debt and the Debt Relief Scheme, the 600 billion rupee package includes the total value of loans to be disbursed to 30 million small and marginal farmers (estimated 500 billion rupees) and One Time Transfer scheme (OTS) to another 10 million farmers (estimated 100 billion rupees). During the 2008-09 financial year, the amount of debt waiver rose 20% to 716.8 billion rupees and the overall benefit of the release and OTS was extended to 43 million farmers. In most Indian countries the number of small and marginal farmers ranges from 70% to 94% of the total number of farmers.
Implementation
Implementation of this scheme is scheduled to be completed by June 30, 2008. Guidelines are issued for each branch of each lending institution including public sector banks, scheduled commercial banks, Regional Credit Banks (RRB) and cooperative lending institutions. The top executives of these banks and institutions are also urged by the Government of India to visit their rural and semi-urban branches to allow for better and faster implementation of schemes.
Criticism
The Release of Agricultural Debt and Debt Relief Scheme was initiated by the United Progressive Alliance (UPA) government and has faced sharp criticism from many groups including opposition parties in the Indian Parliament, agricultural experts and bankers. Critics say that loan abandonment is just a populist move by the UPA Government in light of the upcoming elections. According to Parshuram Ray, director of the New Delhi-based Center for Environment and Food Safety, a loan abandonment is "an election soup that involves a lot of statistics and very little real hope for Indian farmers." An important feature of a program that has been heavily criticized is that it only includes official credit sources and does not include informal loans. So while it benefits the rich and large-scale farmers who have access to institutional credit (about 23% of the total number of farmers), small and marginal farmers, borrowing most of their funds from private moneylenders, will not benefit from the scheme. Another criticism of this scheme is that it can cripple the agricultural credit system.
References
Source of the article : Wikipedia
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