For the very first time in India, probably, farmers have actually approached the banks requiring long term loans by hypothecating their lands as security. They were even showing the standards provided by Reserve Bank of India (RBI).
Led by Telangana Rytu Rakshana Samithi (TRRS), about 150 farmers collected at Narsapur panchayat office on Wednesday and gone over about the issues being dealt with by them due to non-issuance of long term loans by banks.Presenting the copies of RBI guidelines supposedly released for 2016, the farmers have presented them to the bank officials. The copies provided by the farmers include the following points. Farming and allied activities(direct and indirect finance ): Direct finance to agriculture shall consist of short, medium and long term loans offered for farming and allied activities straight to specific farmers.Loans to distressed farmers indebted to non-institutional lenders.Stating that they were being forced to opt for
private lenders to bring loans as banks are not stepping forward to extend a helping hand, many farmers said that they were hypothecating their pattadar pass books to obtain loans from cash loan providers and sometimes pawn gold ornaments.Many farmers said that they have actually taken loans from private loan providers at an interest ranging in between Rs. 2 and Rs 5. Numerous farmers can come out of the debt trap whenat last if the banks come forward to extend long term loans by hypothecating their lands. Banks are not coming forward regardless of guidelines released by RBI. Some of the bank officials do not know that these guidelines were released. This program was taken up for the very firstvery first time in, stated TRRS president Pakala Srihari Rao.Furnishing their information like name, land owned, personal financing title book number and pass book number and the amount spent on bore-wells, as many as 150 farmers submitted their applications 126 to SBI and 24 at SBH-
with a demand to sanction long term loans. The farmers informed that they would arrange protests after one week if there was no positive response from lenders.