The Hindu : Andhra Pradesh News : Andhra Pradesh to extend crop loans at 3 p.c. interest

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Saturday, Dec 08, 2007
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Andhra Pradesh

Andhra Pradesh

Andhra Pradesh to extend crop loans at 3 p.c. interest

Special Correspondent

HYDERABAD: Andhra Pradesh Chief Minister Y. S. Rajasekhara Reddy has said that the State Government is contemplating extending crop loans at three per cent interest (‘pavala vaddi’) from the next kharif season, though a final decision is yet to be taken.

He has urged the banks to work out with officials of the State Government on how best they can participate in the programme.

Appeal to banks

Addressing the 162nd State Level Bankers Committee (SLBC) here on Friday, Dr. Reddy also asked the banks to remove Rs. 1 lakh cap of lending for a self-help group (SHG) while sanctioning Rs. 20,000 bridge loan to each beneficiary, as the full benefit could not be derived by all the members.

Kharif crop

Dr. Reddy said the farmers produced one crore metric tonnes of food grains in the kharif this year, “thanks to the rain, efforts of farmers and the bank loans.”

Bank Loans

Complimenting the banks for their proactive approach in advancing loans, he described as `a great achievement’ the growth in the annual credit plan size from Rs. 17,937 crore in 2003-04 to Rs. 42,000 crore in the current fiscal.

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