Andhra Pradesh: Big Relief for Tenant Farmers – ₹1 Lakh Loan Scheme Announced
AP tenant farmers loan scheme: The Andhra Pradesh government has announced good news for tenant farmers across the state. In a major step to protect farmers from high-interest moneylenders, the government is preparing to offer loans up to ₹1 lakh at low interest rates. This scheme aims to provide financial security and strengthen the agricultural sector.
Loans Up to ₹1 Lakh for Eligible Tenant Farmers
Recognising the financial struggles of tenant farmers—especially those forced to borrow from private lenders—the AP government has decided to extend institutional credit support. Under this initiative, eligible tenant farmers will be sanctioned loans of up to ₹1 lakh to meet cultivation expenses and improve productivity.
The main objective of this scheme is to free tenant farmers from the debt trap and encourage them to invest confidently in farming.
Low-Interest Loans Through PACS
The government has entrusted Primary Agricultural Cooperative Credit Societies (PACS) with the responsibility of implementing this loan scheme. By routing loans through PACS, farmers can access credit at much lower interest rates compared to private lenders.
Currently, officials are collecting detailed data on tenant farmers across Andhra Pradesh. Once the verification process is completed, loan approvals for eligible farmers will begin. These funds can be used for:
Purchase of seeds
Fertilisers and pesticides
Labour and cultivation costs
Eligibility Criteria – Important Conditions
- Tenant farmers must meet the following conditions to avail the loan:
- Must possess valid lease documents issued bythe concerned authorities
- Should be a resident within the PACS jurisdiction and a registered member
- Minimum cultivable land of one acre must be shown in the lease document
- Farmers cultivating assigned lands are not eligible
- Preference may be given to farmers who own a house
- Loan amount (principal + interest) must be repaid within one year
Repayment Period
Farmers must repay the sanctioned loan within one year from the date of disbursement, including interest.
Strong Boost to Andhra Pradesh Agriculture
Agriculture experts believe this initiative will significantly strengthen the state’s farming sector. Easy access to institutional credit will encourage tenant farmers to invest better, improve crop yields, and reduce dependency on private moneylenders.
The AP government is expected to release complete guidelines and implementation timelines soon, bringing clarity on when the loans will be disbursed.
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