Andhra Pradesh has decided that it would be seeking crop loans for farmers in a manner that the loans would be available at 7% rate of interest along with crop insurance benefit. This was declared by Chief Minister of the State, K Rosaiah.
He also said, "The benefit of crop loans at low interest are now being cornered by the landlords instead of the actual farmers who cultivate the land since many of them are tenant farmers. We will seek the guidance of the Centre, Reserve Bank of India and cooperation of all banks on this issue."
Along with this, the CM said that he would also be discussing more issues regarding the state at the Southern Zone Chief Ministers' meeting with Union finance minister Pranab Mukherjee on July 20.
"We will also focus on loans without collateral security to micro, small and medium enterprises (MSMEs). At least a certain percentage of bank loans given to the MSME sector should be under the Credit Guarantee Trust for Small and Medium Enterprises scheme so that young entrepreneurs seeking self-employment get loans up to Rs 1 crore without any collateral security," Rosaiah said.