AP Govt to provide crop loans at 3% interest rate

Hyderabad, Jun 10 (UNI) The Andhra Pradesh Government would provide crop loans at three per cent interest rate for farmers in the state from this Kharif season, Chief Minister Y S Rajasekhara Reddy said today.

Taking part in the extended APCC meeting here, he said an improvised insurance scheme, with village as unit for assessment of crop loss, would be implemented from this Kharif season.

In an effort to inculcate financial discipline among farmers, the government had decided to extend this benefit only to those farmers who had repaid their loans without fail, he said.

Farmers had to repay their loans at seven per cent interest rate and the government would send them back a cheque for an amount equivalent to four per cent interest, he added.

Recalling that some farmers in cyclone-prone coastal region had declined to pay premium for crop insurance scheme with mandal as unit for crop loss assessment last year, he said all farmers would be persuaded to subscribe to the improved crop insurance scheme.

More than five to six lakh tenant farmers, who did not have bank accounts, would be provided institutional finance during this Kharif, he added.

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