A very important and welcome piece of news has emerged for farmers in the Gadwal region. Farmers, who have long been struggling with financial pressure, crop uncertainty, and rising costs, now have access to a reliable and secure option for agricultural loans. Through the Primary Agricultural Cooperative Society (PACS) under the District Cooperative Central Bank (DCCB), farmers will now be provided with long-term loans for tractors, harvesters, and other modern agricultural equipment. This scheme was announced by Single Window Chairman Mr. Pothula Madhusudan Reddy during a press meet held at the Single Window office on Sunday.
The Problem of Private Moneylenders and the Plight of Farmers
Addressing the press, Mr. Reddy highlighted a reality faced by farmers that is often overlooked. He explained that a large number of farmers are still unable to obtain loans from commercial banks. Due to complex procedures, stringent conditions, and delays in receiving loans, farmers are forced to turn to private moneylenders. These moneylenders charge exorbitant interest rates, trapping farmers in a cycle of debt. In many cases, when crops fail or yields are low, farmers are unable to repay their loans and are forced to mortgage or even transfer ownership of their land. This situation is not only financially devastating but also mentally debilitating for the farmers.
A Unique System of Long-Term Loans at Low Interest
To address this serious problem, the Single Window has launched a collaborative and farmer-friendly scheme. Under this initiative, small and marginal farmers can obtain a loan of up to ten lakh rupees at an interest rate of just one rupee by mortgaging a maximum of three acres of land with the Single Window. This loan will be provided for a period of seven years, repayable in 14 installments. Every six months, the farmer will have to pay an installment of approximately Rs. 1,10,000. At the end of seven years, the total amount paid, including interest, will be approximately Rs. 15.4 lakhs. This structured and transparent payment system will help farmers plan for the future and protect them from sudden financial burdens.
Eligibility Criteria and Transparent Process
To avail of this scheme, farmers must meet certain essential conditions. First, the farmer must obtain their CIBIL credit report from the DCCB bank, with a minimum score of 650 being mandatory. Furthermore, the farmer should not have any outstanding crop loans or long-term loans from any other bank. If such a loan exists, the farmer can only apply for this scheme after fully repaying it. This arrangement is in place to prevent farmers from being burdened with unnecessary debt and to maintain transparency in payments.
Required Documents and Verification Process
For the loan application, farmers will need to submit their land-related documents. The title deed (patta passbook) is mandatory. If the land was purchased from someone else, registered documents and copies of revenue proceedings will be required. In the case of inherited land, legal heir certificates and updated revenue records must be submitted. Along with these, old title documents, passbooks, accounts, pahani (land records), old ROR (Record of Rights), and pahani records from 2008-09 will also be necessary. All these documents will be thoroughly verified, and if everything is found to be in order, the application will be sent to the DCCB bank for approval. Mr. Reddy assured that upon completion of all formalities, the loan amount will be credited directly to the farmer’s account within a month.
Special Loans for Agricultural Machinery and Interest Subsidy
In addition, loans are also available for farmers for tractors, harvesters, and other agricultural machinery under the Agricultural Infrastructure Scheme. The initial interest rate on this loan is 9 percent. However, farmers who repay their installments on time will receive a 3 percent interest subsidy from the central government. This will reduce the effective interest rate to just 6 percent, which is equivalent to approximately 50 paise per month for every 100 rupees. This facility will encourage farmers to adopt modern equipment and increase their productivity.
A Strong Step Towards the Future of Farmers
This initiative, launched under the guidance of Mr. Mamillapalli Vishnuvardhan Reddy, Chairman of the Mahbubnagar District DCCB Bank, is set to be a strong support system for farmers. It will not only reduce their dependence on private moneylenders but also provide them with an organized, secure, and government-backed credit system. In the long run, this scheme can prove to be a crucial step towards strengthening the economic condition of farmers, increasing self-reliance, and bringing stability to the agricultural sector.
