Low-Interest Long-Term Agricultural Loans Now Available Through Aija Single Window: Relief for Marginal Farmers

Gadwal: Farmers in the region now have an opportunity to access long-term agricultural loans, including for tractors, harvesters, and other equipment, through the local Primary Agricultural Cooperative Society (PACS) under the District Cooperative Central Bank (DCCB). This was announced by Single Window President Mr. Pothula Madhusudhan Reddy during a press meet held at the Single Window office on Sunday.

Addressing the media, he highlighted that farmers often face difficulties securing loans from commercial banks. As a result, they are forced to turn to private moneylenders, who charge exorbitant interest rates. In several cases, farmers have even mortgaged or transferred ownership of their lands to moneylenders when they fail to repay loans, especially during years when crops fail or yields are low.

To address this pressing issue, Mr. Reddy revealed a supportive initiative where small and marginal farmers can mortgage up to three acres of their land to the Single Window and avail a maximum of Rs. 10 lakh loan at just one rupee interest. The loan is structured to be repaid in 14 installments over seven years, with each installment amounting to Rs. 1,10,000 every six months. At the end of the term, the total repayment (principal and interest) will amount to Rs. 15.4 lakhs.

For a farmer to be eligible, they must first obtain a CIBIL credit report from DCCB Bank with a minimum score of 650. Additionally, farmers should not have any existing crop or long-term loans from other banks. If they do, those loans must be cleared before applying for this scheme through DCCB.

The required documents include:

Pattadar Passbook (Title Deed)

If the land was purchased from others, a registered document and revenue proceedings

In case of inherited lands, legal heir records and updated proceedings from revenue authorities

Old title documents and passbooks, and

Revenue records such as Khata, Pahani, old ROR (Record of Rights), and Pahani records from 2008–09.

These documents will be thoroughly verified, and if all are in order, the application will be sent to DCCB Bank for approval. Mr. Reddy assured that loans would be sanctioned and credited to the farmer’s account within a month.

He also elaborated that loans for agricultural equipment like tractors and harvesters can be availed under the Agriculture Infrastructure Scheme at a 9% interest rate. However, farmers who make their repayments on time are eligible for a 3% interest subsidy from the Central Government, effectively reducing their interest burden to just 6%—equivalent to 50 paise per month per Rs. 100.

This initiative, under the guidance of Mahabubnagar District DCCB Bank Chairman Mr. Mamilapalli Vishnuvardhan Reddy, is expected to significantly benefit the farming community by curbing their dependency on private moneylenders and offering a structured, government-supported loan system.

Mr. Madhusudhan Reddy urged farmers to make the most of this opportunity and approach the Single Window office for further details and assistance in the application process.