Union minister asks banks to speed up crop loan to farmers

Hyderabad June 21: Labour and Employment Minister Bandaru Dattatreya has been urged the bankers to speed up crop loan distribution process for the benefit of the farmers.

Addressing the media persons here after the review meeting with State Level Bankers Committee (SLBC) here, Dattatreya said that the banks should publicize more on the recently announced pro-farmers initiatives taken by the Central government.

The Minister informed that farmers will continue to get short-term crop loans up to Rs.3 lakh at an interest rate of 4 percent as the Union Cabinet approved an interest subvention scheme, and earmarked a sum of Rs.20,339 crore for it.

He also said that small and marginal farmers who borrow at 9 per cent for the post-harvest storage of their products will get an interest subvention of 2 per cent, bringing down the interest burden to 7 per cent per annum.

As the farming activity began in full scale, loans should not be the problem for the farmers, Dattatreya said and informed that out of the targeted Rs. 23,852crores of crop loans, Rs. 2573 crores were distributed already in this Kharif season.



In the coming two months, the RBI will release the remaining crop loan amount of Rs. 21, 279 Crores to banks to achieve the crop loans target, he informed and said Rs. 282 crores were distributed to the DCCBs and more Rs.400 crores are needed for them.

Dattatreya requested the Telangana State government to release matching funds for the Pradhan Mantri Fasal Bheema Yojana. He also said that more soil health cards should be provided for the benefit of the farmers.

Telangana BJP MLAs Kishan Reddy, Ch. Ramachandra Reddy and SBI officials U.N. Maiya, Manikandan and other bank officials were present.