Andhra Pradesh chief minister, N Kiran Kumar Reddy, on Sunday announced a ‘zero-interest’ scheme would be extended to those farmers who take agricultural loan of up to Rs 1 lakh and repay it in time.
Addressing a public meeting at Yerraguntapalem village in Prakasam district today, the chief minister said the scheme would be implemented from the 2011 rabi season.
“About 95 per cent of farmers in the state go for agri loans of up to Rs 1 lakh. This new scheme will benefit them. Though the remaining 5 per cent farmers take loans over and above Rs 1 lakh, zero-interest will be applicable for the Rs 1 lakh loan,” Reddy said.
Under the scheme, the state government will pay anywhere between Rs 650 crore and Rs 700 crore to banks on behalf of the farmers, he added.
