A lot of criticism has been directed at the recent announcement of farm loan waivers. The big fear is that while it will provide momentary relief to farmers, it could destroy the credit discipline.
In an interview to CNBC-TV18, HP Singh, Founder & MD of Satin Creditcare Network spoke about the longer term impact of farm loan waivers and the latest happenings in the company.
Credit culture to an extent does get hurt in this process when you give farm loan waivers, he said.
He further added that this is probably a problematic area for the banking institutions because farmers in that space are aware that this is the differentiation they get from the banking community.
He said that credit demand has spurred post demonetisation.
Watch accompanying video for more details.
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