AP Govt aims to provide farm loans at 3%: YSR

Hyderabad, Mar 17 (UNI) In the wake of the successful implementation of the 'Pavla Vaddi' scheme for Self Help Groups (SHGs), the Andhra Pradesh Government is striving hard to provide farm loans at three per cent interest rate, Chief Minister Y S Rajasekhara Reddy said today.

Addressing the concluding session of the State Level Bankers' Committee meeting here, Dr Reddy wanted the Centre to assist the state in implementing the ambitious scheme.

''I have spoken to the Prime Minister at least six times on the issue and the Centre is speaking in our languague to help the farmers.

''The bringing down of interest rate for farmers to seven per cent is not an end at all. It is only a beginning of the effort to lower the rate substantially,'' he added.

Complimenting the bankers for providing Rs 1,622 crore till last month to 2.80 lakh SHGs as against Rs 2,200 crore to three lakh groups by this fiscal, he wanted bankers to provide at least Rs 3000 crore to many new SHGs.

Dr Reddy said he taken up with the RBI the issue of private microfinance companies fleecing poor SHGs.

UNI SM GM 1923