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Kiran Kumar urges bankers to extend time for rescheduling khariff loans

Posted by on March 30, 2011 0 Comment

Hyderabad: The Chief Minister, Mr N. Kiran Kumar Reddy, on Wednesday appealed to all the bankers to extend time for reschedule of Khariff loans up to May 31 and give 100 per cent of targeted Rabi loans immediately.

Delivering key-note address at State Level Bankers’ Committee (SLBC) meeting at Jubilee Hall here, Mr Kiran Kumar Reddy said that the State government has announced full interest waiver on Khariff loans up to March 31 for the farmers whose crops were damaged in rain and cyclone in 680 mandals. Out of Rs 11,637 crores of Khariff loans in these mandals, the crop loans of Rs 981 crores have been rescheduled till now. He also underlined the need to extend time for re-schedule of Khariff loans up to May 31 for the benefit of farmers in the rain-hit areas.

Stating that seasonal conditions were not in favour of the farmers for the last few years, the Chief Minister asked the bankers to examine reduction of interest rate on crop loans. The State government has already written to the Centre on the matter, he added. The government was also ready to immediately release the amount of loans waiver for Khariff crop, which was announced by it if the banks send relevant information about loans to it, he said.

Reminding that AP Land Licensed Cultivators Act, 2011 (Tenant Farmers Bill) was not passed in the Assembly budget session, Mr Reddy said that a fresh ordinance would be issued in two or three days to help 30 to 40 lakh tenant farmers to get access to crop loans, crop insurance, input subsidy, agriculture inputs and so on. The loan cards would be issued to maximum number of tenant farmers at the earliest, he said and asked the bankers to give loans to tenant farmers in a big way. He also assured to examine the suggestion of the bankers on tenant farmers groups system. He felt that Pavala Vaddi (0.25 per cent interest) to farmers did not get popular as expected.

The Chief Minister also told the bankers that the government has modified the relief package of handloom weavers to repay 100 per cent principal amount instead of 75 per cent earlier to individual weavers and a GO has been released in February this year in this regard. Loan accounts of all eligible weavers should be written off and claims should be submitted to Director of Handlooms and Textiles, he added.

Referring to the problems being faced by the SC, ST and Minorities at ground level to get loans from the banks, he asked the bankers to sort out the issue and extend loans to the beneficiaries of these sections liberally. Claiming that poor women have taken loans worth Rs 7,500 crores from Micro Finance Institutions in the State, he stressed the need to covert them into the banking sector to avoid exploitation. “Out of Rs 7,776 crores financing to Self Help Groups this financial year, we have financed Rs 6,740 crores equivalent to 88 per cents. He also stressed the need to achieve 100 percent target and lend more to SHGs.


The Minister for Secondary Education, Mr K. Parthasarathi, said that though the NABARD had directed the banks to extend loans to JNG Groups without seeking any security, the Managers of bank braches were insisting on furnishing security. The NABARD also released Rs 350 crores to extend loans for sheep and goat development on the basis of first come first serve, but the bank managers were expressing ignorance about it when the people approached them.

Regretting that the banks were showing discrimination towards the SC, ST and BCs on extending loans, he pointed out that only 20 per cent of total target of SC, ST and BC credit was achieved till today. The bank managers were also showing needless interest in selection of beneficiaries. They were giving preference to those recommended by the account holders who deposited money in their branches, he added. (NSS)

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