Archive · 22 Aug 2026
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.
The Andhra Pradesh Tenant Farmers’ Association sought unsecured crop loans of up to Rs 2 lakh for eligible tenant farmers.
The request covers tenant farmers, Rythu Mitra Groups and Joint Liability Groups with good repayment records.
The association said Reserve Bank of India guidelines allowing such loans were not being implemented effectively in Andhra Pradesh.
It also requested loans of up to Rs 5 lakh for farmers able to provide necessary sureties or guarantees.
Agriculture special chief secretary B Rajasekhar said he would discuss the matter with bankers and seek action.
- Who
- The Andhra Pradesh Tenant Farmers’ Association, Rythu Mitra Groups, Joint Liability Groups and eligible tenant farmers.
- What
- They demanded unsecured crop loans of up to Rs 2 lakh through Kisan Credit Cards, with larger loans available against guarantees.
- When
- The representation was submitted during the reported request for government intervention; no specific date was provided.
- Where
- Amaravati, Andhra Pradesh.
- Why
- The association said rising cultivation costs and difficulties accessing institutional credit were affecting tenant farmers.
- 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.