The Andhra Pradesh Tenant Farmers’ Association has urged the State government and banks to provide unsecured crop loans of up to ₹2 lakh to the tenant farmers, including members of the Rythu Mitra Groups (RMGs) and Joint Liability Groups (JLGs), particularly those with a good record of repaying bank loans.

Association State secretary M. Haribabu and Andhra Pradesh Rythu Sangham State president V. Krishnaiah submitted a representation to Agriculture Department Special Chief Secretary B. Rajasekhar, seeking his intervention to ensure that eligible tenant farmers receive crop loans through Kisan Credit Cards (KCCs).

They said that members of RMGs and JLGs were not receiving crop loans in accordance with the Scale of Finance applicable to various crops. They pointed out that despite Reserve Bank of India guidelines permitting collateral-free agricultural loans up to ₹2 lakh, the benefit was not being effectively implemented for tenant farmers and group members in Andhra Pradesh.

The association leaders said that earlier guidelines had allowed collateral-free crop loans up to ₹1 lakh. However, with cultivation costs rising, the Scale of Finance for various crops had subsequently been enhanced. It also noted that the limit for collateral-free agricultural loans had been increased from ₹1.6 lakh to ₹2 lakh.

Despite these provisions, banks were allegedly creating several hurdles in extending crop loans exceeding ₹1 lakh even to groups and individual members who had been regularly repaying their previous loans, they added.

Published - August 21, 2026 08:16 pm IST