Southern states to seek direct sanction of loans to tenant farmers and no collateral security on loans

The southern states want the bank loans to the tenant farmers should be directly sanctioned and no collateral security should be taken from small and micro enterprises in the state for giving loan. The southern states finance ministers conference is going to be held on July 20 and the Chief Minister K Rosaiah told that the state will taking up this agenda, to arrange for sanction of loans directly to the tenant farmers with suitable guidelines so that they can get loans at 7 per cent interest and other benefits including crop insurance, with Union finance minister Pranab Mukherjee, who will be attending the meet.

The chief ministers or finance ministers of the southern states including Andhra Pradesh, Tamil Nadu, Karnataka, Kerala and Union Territories of Pondicherry, Andaman and Nicobar Islands and Lakshadweep will be attending the meet.

All the CEOs, CMDs of public sector banks and financial institutions, Reserve Bank of India deputy governor and NABARD chairman will also attend the meeting.

Rosaish reviewed the arrangements and issues with the chief secretary S V Prasad, special chief secretary (finance) G Sudhir and other officials, to be taken up in the meeting.

The chief minister told that his main focus will be on getting loans without collateral security for micro, small and medium enterprises (MSMEs). He told a certain percentage of bank loans be given to MSME sector under the Credit Guarantee Trust.

Rosaiah added that he will ask for 2% interest subvention for the loans that were rescheduled due to floods and drought in the state also for waiver of the service charge, being collected on SMART cards of NREGS beneficiaries.

In a press release, the CMO stated in the meeting the financial issues confronting the states and the will also be taken up, also the CMDs of public sector banks and Union finance minister will respond to their queries and problems.

The other issues to be taken up in the meeting include state wise flow of credit and credit related parameters like agriculture credit, MSME credit, housing and education loans, credit to weaker sections and minority communities and CD ratio etc.

Also, the progress of Centrally sponsored schemes like Swarnajayanti Gram Swarogar Yojana (SGSY), Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Prime Minister's Employment Generation Programme (PMEGP), revival package for short term cooperative credit structure, implementation of Aam Admi Bima Yojana and implementation of co contributory pension scheme by the states for unorganized sector under the Swavalamban Pension Scheme of the Government of India will be part of the agenda in the meeting.