No stamp duty on loans to farmers by banks

Hyderabad, Mar 10 (UNI) Andhra Pradesh Minister for Cooperation Kanna Lakshminarayana today said banks were not charging any stamp duty on loans given to farmers upto Rs 2 lakh.

Replying a question by K Subbarayadu, D Narendrakumar and others of the TDP, the Minister said small and marginal farmers constitute 91 per cent of the farming community who do not borrow more than Rs 2 lakh.

He said of the Rs 13,000 crore availed by farmers, Rs 11,000 crores went to the small and marginal farmers.

The Minister said farmers were offered loans at the rate of 6 per cent by the government during 2004-05 which was further reduced to 5 per cent during the current year. This was the lowest interest charged in the entire country, he said.

Mr Lakshminarayana also said the government had spent Rs 140 crore during the last year towards subsidy on interest, benefitting 19 lakh farmers.

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