Andhra Pradesh CM Asks Banks to Extend Credit to Tenant Farmers

Jagan Mohan Reddy told the State Level Bankers Committee (SLBC) meeting on March 10 at his camp office that the bankers could only meet 49.37% of the target set for loans to tenant farmers by December 2022.

According to him, credit was extended to only 1,63,811 tenant farmers. While the target was Rs 4,000 crore, banks could only provide Rs 1,126 crore during the first nine months of fiscal year 2022-23, he added. He urged banks to help tenant farmers and said bankers could use the data made available to them.

"At the village secretariat, the government provides all documents, such as the agreement between the landowner and the tenant farmer. Tenant farmers are also getting benefits from the YSR Rythu Bharosa. All of the information is being digitised. The cultivation information is being e-cropped. As a result, higher loan amounts should be granted to tenant farmers," the Chief Minister stated.

In terms of short-term crop loans, he stated that only 83.36% of the target had been met. He added that the bankers should focus entirely on meeting the targets. "Banks are offering to pay only 4% interest on the savings of women's self-help groups, while collecting more interest on loans granted to them. Banks should reconsider and pay more interest on women's SHG savings," he said.

Jagan Mohan Reddy praised the bankers for liberally extending loans to petty traders and urged them to show similar enthusiasm and stand by them in the future by supporting the Jagananna Thodu programme.

"At a time when the government is attempting to alter the rural landscape through the RBKs, digital libraries, English medium schools, village and ward secretariats, skill development centres in all the Assembly constituencies, and a skill development university for enhancing the abilities of the youth and make them stand on their own, it is a must for banks to play more proactive role and inspire the changing economic scenario. Banks should play a key role in the development of these institutions," the Chief Minister observed.

On the Global Investors Summit in Visakhapatnam, he stated that 352 MoUs worth 13,05,663 crore had been signed with entrepreneurs, providing employment to 6,03,223 people. He urged bankers to come forward and extend loans to entrepreneurs and ancillary Micro, Small, and Medium Enterprises (MSMEs) in order to achieve economic growth and put the state on the path to development.