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| Banks urged to convert crop loans to term loans |
| BS Reporter / Chennai/ Hyderabad Oct 30, 2009, 00:27 IST |
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As an immediate step towards providing relief to the population affected by drought and floods, Andhra Pradesh chief minister K Rosaiah has urged banks to convert all the crop loans sanctioned up to September 15, 2009, into term loans.
“Since 90 per cent of the mandals have been declared drought affected, all crop loans sanctioned have to be converted into term loans. After conversion, fresh crop loans also are to be given. Similar action is required to be taken in respect of flood-affected mandals and villages in five districts – Kurnool, Mahabubnagar, Nalgonda, Krishna and Guntur,” the chief minister said at the 168th state-level bankers committee (SLBC) meet on Thursday.
Last month, the state government has declared 981 mandals of the 1,128 mandals of the state as drought-affected.
According to government estimate, about 525 villages were affected due to heavy rains between September 29 and October 4, and the loss to standing crops was put at Rs 1,275 crore.
As on September 30, 2009, banks in the state have lent crop loans to the tune of Rs 13,042 crore, against the target of Rs 14,100 crore set for the kharif season.
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