1 week ago

Tenant Farmers Seek Rs 2 Lakh Unsecured Crop Loans

Tenant farmers in Andhra Pradesh want easier access to bank loans for growing crops.

They are asking for loans of up to Rs 2 lakh without needing collateral.

The request applies to farmers and groups that have repaid earlier loans properly.

The farmers’ association says many eligible people are still unable to receive more than Rs 1 lakh.

It says the cost of farming has increased.

The association believes existing Reserve Bank of India rules should be followed.

For larger loans up to Rs 5 lakh, farmers could provide guarantees or sureties.

A senior agriculture official said he would discuss the issue with banks.

Key facts

Requested unsecured loan limit: Up to Rs 2 lakh for eligible tenant farmers and farmer groups.
Requested higher credit limit: Up to Rs 5 lakh for farmers providing necessary sureties or guarantees.
Earlier unsecured loan limit: The association said earlier guidelines allowed unsecured crop loans up to Rs 1 lakh.
Revised collateral-free limit: The association said the agricultural loan limit without collateral was increased from Rs 1.6 lakh to Rs 2 lakh.
Eligible groups: Tenant farmers, Rythu Mitra Groups and Joint Liability Groups with good repayment records.
Government response: B Rajasekhar said he would raise the matter with State-Level Bankers’ Committee and bank officials.

thehansindia.com · 1 week ago