Tenant farmers in Andhra Pradesh seek unsecured crop loans of up to ₹2 lakh
The Andhra Pradesh Tenant Farmers’ Association is requesting that the state government and banks provide unsecured crop loans of up to ₹2 lakh. They argue that current banking hurdles prevent eligible tenant farmers from accessing credit despite existing RBI guidelines.
Why it matters
Improving access to credit for tenant farmers is critical for agricultural productivity and financial stability in rural India.
The Andhra Pradesh Tenant Farmers’ Association has urged the State government and banks to provide unsecured crop loans of up to ₹2 lakh to the tenant farmers, including members of the Rythu Mitra Groups (RMGs) and Joint Liability Groups (JLGs), particularly those with a good record of repaying bank loans.
Association State secretary M. Haribabu and Andhra Pradesh Rythu Sangham State president V. Krishnaiah submitted a representation to Agriculture Department Special Chief Secretary B. Rajasekhar, seeking his intervention to ensure that eligible tenant farmers receive crop loans through Kisan Credit Cards (KCCs).
They said that members of RMGs and JLGs were not receiving crop loans in accordance with the Scale of Finance applicable to various crops. They pointed out that despite Reserve Bank of India guidelines permitting collateral-free agricultural loans up to ₹2 lakh, the benefit was not being effectively implemented for tenant farmers and group members in Andhra Pradesh.
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