Farm loans rescheduled in drought-hit mandals

Tirupati: Agricultural loans in the drought-hit mandals in the district are rescheduled with an immediate effect and farmers need not pay either the principle amount or interest for the loans taken after April 1, 2018, said District Collector PS Pradyumna.

Speaking to the media in Tirupati on Tuesday, he said that a meeting with bankers was held and the modalities have been worked out. He urged all the farmers to immediately approach their respective banks and submit applications in the prescribed format seeking rescheduling of their loans.

This will be applicable to 2.56 lakh farmers in 58 mandals across the district which were announced as drought-hit. They need not repay their loans till August 2019 and after that they can repay it in three yearly instalments, he added.

The Collector mentioned that with a view to provide loans to farmers by the time of sowing itself, bankers have given Rs 3,600 crore loans in these 58 mandals and this amount would be rescheduled.

If any farmer wants fresh loan now they can approach banks and apply for it and the bankers were asked to sanction the loans. Only eight mandals in the district out of total 66 were not declared as drought-hit.

They are Varadaiah Palem, BN Kandriga, Tirupati Rural, Ramachandra Puram, Palasamudram, Srikalahasti, Kalikiri and B Kothakota. “Proposals have been sent to the government to declare these eight mandals also as drought-hit.

The government would take a decision after examining the average rainfall of August,” Pradyumna maintained. Indian Bank DGM and convener of all banks Lakshminarayana has said that there is a simple format for submitting applications for rescheduling of loans which the farmers should fulfil.

If farmers apply for this, they will get 3-5 years reschedule depending on crop. All banks agreed to this and would submit a weekly report to the Collector on the progress, he stated.