Andhra Pradesh   

Farmers unaware of loan details

–Photo: S. Harpal Singh

Ignorant:Farmers in Adilabad standing in long queues to get crop loans sanctioned.

ADILABAD: The complaints being filed by farmers in the Adilabad district reveal lack of awareness about institutional agriculture loaning, one of the factors that is blocking progress in rural areas.

Unaware about the scale of finance they are eligible for, a majority of farmers depend on the ‘generosity' of bank officials for the crop loan.

“Cotton farmers, for example, get only about Rs. 7,000 per acre though the scale of finance for this crop has been fixed at a minimum of Rs. 13,500 and a maximum of Rs. 15,000,” reveals a banker.

He squarely blames fellow bank managers and agriculture officials for not telling farmers about the amount of funds they can raise through a bank loan.

“Farmers cannot help but approach private money lenders when they fail to raise required finance from the bank”, he points out.

. So far only about Rs. 200 crore has been advanced as crop loans in the district against a target of Rs. 737 crore during kharif.

Another major irritant in the gamut is the credibility of bankers. Farmers with overdue accounts (53,242 farmers of the 3.6 lakh owe about Rs. 128 crore as overdue to banks) are reluctant to clear the old dues to obtain a fresh loan fearing the manager may not sanction one after they realises the debt.

Around 253 farmers of the 800 in Kusli village in Dilawarpur mandal are known to be delaying renewal of their loan on account of this reason.

They doubt if a loan will be sanctioned after they repay the old dues by raising the funds from private money lenders.

“Bankers are to blame for such sorry state of affairs. The branch managers and agriculture officials should have talked to borrowers on this aspect to build confidence among them,” says an office bearer of a bankers trade union as he points out towards a debilitating communication gap between the two sides.

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