Andhra Pradesh - Guntur   

Crop loan recovery drops in co-op bank

By Our Staff Reporter

GUNTUR, JUNE 24. The recovery of crop loans from the farmers by the Guntur District Cooperative Central Bank has come down to 27 per cent during the current crop loan year that will come to a close by this month-end.

Out of a total recovery demand of Rs. 304 crores from the 286 mutually aided cooperative thrift societies in Guntur district, only Rs. 81.2 crores has been collected so far. The change of guard in the State with several promises on interest waiver and concession on penal interest has stopped all the repayments.

The GDCCB General Manager, A. Giridhar, said that a large number of farmers were expected to repay the loans and service them in the next few days. They would be issued fresh loans within 24 hours of repayment, he added.

Majority of the farmers would benefit from reduction in the rate of interest on the crop loans, which are in three categories -- long-term, short-term and medium-term with 3 per cent waiver of penal interest on long overdue amounts and another 3 per cent reduction on the interest in any part of the district.

From the 2002 crop year rebate of 5 per cent on interest on loans in the non-drought prone areas and complete waiver of interest for short and medium term loans in the drought-prone areas was extended till June 30 and out of the 2.11 lakh borrowers 1.23 lakh borrowers had taken the benefit of the scheme amounting to Rs. 13.50 crores. The bank had set a target of lending Rs.150 crores of crop loans during the current kharif season from April to September. Of that, Rs.11.50 crores had already been disbursed, he pointed out. The total lending of the bank was Rs.421 crores by March-end, of which Rs. 390 crores was on the agriculture sector with majority of the beneficiaries being marginal and small farmers. The recovery of crop loans was 65 per cent in 2002 and 42 per cent last year, he said. The bank had identified 25 lenders from whom efforts were being made to recover the amounts so that they did not turn habitual defaulters.

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