Andhra Pradesh government has urged Reserve Bank of India to extend the repayment period for rescheduled crop loans from seven to 10 years, fix the upper limit at Rs.1.5 lakh and cover rabi crop, Finance Minister Yanamala Ramakrishnudu said here on Thursday.
In response to an earlier request from Andhra Pradesh, RBI approved rescheduling of loans for 2013-14 kharif period, but fixed the repayment period for three years, including a one-year moratorium. It also sought additional details from the government on Wednesday.
Mr. Ramakrishnudu told reporters here on Thursday that normally RBI would give one year’s moratorium and five-year period for repayment but it agreed for a three-year period this time, including moratorium. “We are asking that to be extended to seven to 10 years”, he added. Besides urging RBI to fix the upper limit at Rs.1.5 lakh, the State government wants gold loans up to Rs. 50,000 to be rescheduled.
The State government has requested RBI to extend the rescheduling facility for 2013-14 rabi season too. He said the government’s aim was to ensure that the farmer was not burdened, be it waiver or rescheduling. “We will repay. We will take the burden of farming community”, he added.
The State government informed the RBI that 575 mandals in Andhra Pradesh were affected either by drought or floods and wanted the loans to be rescheduled. In the case of farmers in 86 mandals which did not face any natural calamity, he said the government would take their burden as it did not want to discriminate.
