Bengaluru:  The State Government is likely to announce waiver of farm loans in Commercial Banks at the Cabinet meeting to take place in Bengaluru tomorrow.

The State Government has already passed an order on waiver of farm loans up to Rs.1 lakh in Co-operative Banks. Kumaraswamy is all set to get Cabinet approval for farm loan waiver during Friday’s Cabinet meeting.

The Chief Minister is said to have guaranteed the National Banks on security for farm loan waiver, according to which the Government will pay the farm loans in three instalments. The farm loans in National Banks stands at the Rs.26,000 crore and the interest accrued is Rs.5,300 crore. The State Government will pay Rs.8,666,66 crore in three instalments. The Govt. will pay the first instalment to Banks while issuing the order on farm loan waiver and it will provide guarantee for two other instalments to be paid on later dates.