Banks to ease loan burden of drought-hit farmers
Share :
The State Level Bankers’ Committee meeting underway in Vijayawada on Tuesday
Vijayawada: The State Level Bankers’ Committee (SLBC) here on Tuesday discussed comprehensive financial relief measures for farmers and agricultural borrowers affected by the Kharif 2026 drought in Andhra Pradesh.
The measures were considered at the special 237th SLBC meeting held following the State government’s notification declaring 388 mandals across the State as drought-affected. Of these, 283 mandals have been classified as severely affected and 105 as moderately affected. Under the proposed relief framework, agricultural and allied-sector borrowers whose accounts were classified as standard and were not in default for more than 30 days as on October 1 will be eligible for restructuring benefits.
In moderately affected mandals, eligible loans will be provided a 12-month moratorium, with the overall repayment period extended up to 36 months, including the moratorium period. In severely affected mandals, borrowers will get a 12-month moratorium, while the total repayment period can be extended up to 60 months, including the moratorium. The relief package covers a broad range of agricultural and allied activities. These include crop production loans, animal husbandry, fisheries, sericulture, agricultural term loans, agro and food-processing units and other agriculture-dependent livelihoods affected by the drought.
Besides restructuring existing loans, banks have been advised to consider need-based fresh or additional finance to eligible borrowers. Such assistance may be provided for crop cultivation, agricultural inputs, working capital, fodder and feed requirements and restoration of productive assets, subject to viability assessment and the respective bank’s lending policies.
The SLBC directed participating banks to proactively identify eligible loan accounts and initiate the relief process without waiting for borrowers to approach branches. Banks were also instructed to maintain transparent records, widely publicise the relief measures and strictly follow the timelines and guidelines prescribed by the Reserve Bank of India.
The measures are aimed at providing immediate financial relief to drought-hit farmers, easing repayment pressure and ensuring continued access to institutional credit during the current agricultural season.
