Mahbubnagar: Banks reluctant to lend loans to farmers, street vendors

Mahbubnagar : District Collector G Ravi Kumar expressed dismay at the realisation that only 51.6 per cent of the agricultural loan targets had been met for the year 2023-24. A mere Rs. 2224.86 crore was disbursed against the ambitious target of Rs 4333.58 crore.

At a meeting with district bankers, Collector G Ravi Nayak sought explanations for the low disbursal of agriculture and micro loans to street vendors in the district. Emphasising the importance of focusing on the priority sector, he urged banks to conduct financial awareness camps to prevent residents from falling prey to moneylenders.

Reviewing the achievements against the annual loan plan for 2023-24, the Collector highlighted that only 51.34 per cent of the set target had been accomplished in the agriculture sector, with Rs. 2224.86 crore disbursed till September. For agricultural crop loans, 106.7 per cent of the target was achieved, disbursing Rs 1453.82 crore out of the earmarked Rs 3162.45 crore.

Addressing the bankers, the Collector directed special attention to the disbursement of the remaining loans under the priority sector. The banks were instructed to provide data on the lifestyle changes of beneficiaries after availing loans and loans given in the last five years under the State Bank of India’s Rural Self-Employment Training (RSHTI).

The Collector also mandated bankers to extend loans to all street vendors identified through the Mission for Elimination of Poverty in Municipal Areas (MEPMA). While 15,905 street vendors were earmarked for loans within municipality limits, only 8,000 had received loans, leaving 7,000 pending. In the second phase, out of 9,826 identified vendors, only 1,028 had been granted loans.