Farmers urge banks to renew loans without principal repayment burden

Kadapa – Andhra Pradesh: The Andhra Pradesh Farmers’ Association Kadapa District Committee submitted a petition on Wednesday to the in-charge manager of the lead bank in Kadapa, demanding that banks renew agricultural loans by accepting interest payments alone, without insisting on principal repayment.

Loan renewal challenges amidst financial struggles

Farmers in the district traditionally secure loans from banks during the Kharif and Rabi seasons by pledging their land passbooks and household gold ornaments. As per banking norms, if loans are renewed within a stipulated period, farmers receive interest concessions and are exempt from penalties. Many farmers rely on this system, repaying only the interest while rolling over their loans.

However, a recent incident at the State Bank of India (SBI) Main Branch in Yerraguntla highlighted growing concerns. A farmer from VN Palli mandal, who had pledged his gold for a loan, approached the bank to renew it, offering to pay the interest. Bank officials reportedly refused, stating that renewal would be allowed only if both interest and principal were paid together.

Impact of drought and uncertain market conditions

The Farmers’ Association noted that erratic rainfall and drought conditions have severely impacted crop yields, leaving farmers struggling to repay loans. Furthermore, despite government announcements, support prices for crops are not being effectively implemented, leaving farmers without profitable selling options.

Given these circumstances, the Andhra Pradesh Farmers’ Association Kadapa District Committee has urged banks to renew agricultural loans without forcing farmers to pay the principal amount, as doing so would place an undue financial burden on them.

Leaders call for immediate relief

The petition was submitted in the presence of several district leaders, including Andhra Pradesh Farmers’ Association District Presidents and General Secretaries MV Subbareddy and Pothireddy Bhaskar, District Executive President Takkoli Manohar Reddy, Vice Presidents Katta Yanadaiah and E Balachandraiah, Assistant Secretaries T Rammohan Reddy and P Chandrasekhar Reddy, and committee members L Vijayabhaskar Reddy, Nagi Reddy, Guruvayya, Pakirappa, Podurthi Janardhan, and Maheshwar Reddy.