What changed
The Government of India modified the clarification on query No.33 from the earlier June 20, 2008 circular. Now, for composite loans covering both livestock and related infrastructure (sheds, pens, fences), the entire loan amount counts toward the eligible amount. Previously, the treatment of such components was less clear.
What it means for you
Primary urban cooperative banks must now include the full composite loan amount for poultry, sheep, piggery, or cattle farming when calculating eligibility under the debt waiver scheme. This expands relief for farmers with integrated operations. Standalone loans for only sheds or fences remain outside the scheme, so banks need to distinguish between composite and standalone loans.
What you must do
- Update your internal guidelines to treat composite livestock loans (including infrastructure costs) as fully eligible for the debt waiver.
- Train branch staff to identify and correctly classify composite vs. standalone loans for livestock-related infrastructure.
- Communicate this modified clarification to all branches for consistent implementation.
- Review existing loan applications under the scheme to ensure composite loans are not wrongly excluded.
Who it affects
Primary (Urban) Cooperative Banks, Branches handling agricultural loan portfolios, Farmers with composite loans for poultry, sheep, piggery, or cattle farming
Does this clarification apply to all livestock loans?
It specifically covers composite loans for poultry farming, sheep rearing, piggery, or cattle farming where part of the loan is used for sheds, pens, or fences. Standalone loans for only those structures are not covered.
What should banks do if they previously excluded such composite loans?
Banks should revisit those cases and include the full composite loan amount in the eligible amount as per the modified clarification, ensuring smooth implementation of the scheme.