HYDERABAD: Farmers, who availed agricultural loans, are facing a hard time renewing them as the State government has stopped providing Record of Rights (RoR) Pahani to agricultural lands after the launch of Dharani portal.
Several banks continue to ask for RoR Pahani for loan renewal. If the beneficiaries fail to renew their loans on or before the due date, they will be treated as loan defaulters. This, in turn, means they will have to forgo the benefits provided by the State and Central governments.
Financial institutions sanction agricultural loans under a stipulated time frame, expecting the repayment of the loan amount within a year. As per norms, agricultural loans must be renewed every year, if they aren’t already paid for. The banks will charge late dues, and increase the interest rate from 7 per cent to 14 per cent, if the loans aren’t renewed.
Moreover, the loan account will turn into a Non-Performing Assets (NPA), and the beneficiary will become ineligible for loan waiver or subsidies thereon. The State government stopped issuing RoR from September 8. Though land registrations have resumed in the State, the government has not begun issuing RoR, pushing the farmers into distress.
Financial institutions, meanwhile, argue that they need proof of agricultural land, which shows they’re not sold or transferred to others. “Unless they provide a document showing the status of the land, we cannot renew the loan,” a bank official said.
P Obul Reddy, AGM of State-level Bankers Committee said, “We suggest renewing the loans with the help of other valid documents, like agricultural land passbooks. The concern is new, and it will be addressed soon.”