---
title: "Andhra tenant farmers seek unsecured crop loans up to ₹2 lakh"
url: https://projectchintan.com/article/andhra-pradesh-tenant-farmers-loans-gfek2
publisher: Project Chintan
author: Project Chintan Newsroom
section: Politics
published: 2026-08-21T15:02:26.019Z
modified: 2026-08-21T18:00:06.581Z
language: en-IN
---

# Andhra tenant farmers seek unsecured crop loans up to ₹2 lakh

Tenant farmers in Andhra Pradesh asked the state to provide collateral-free crop loans up to ₹2 lakh, arguing RBI guidelines allow this but banks are restricting loans. The appeal targeted the Agriculture Department and Kisan Credit Cards.

## Key takeaways

- Tenant farmers in Andhra Pradesh petitioned the government and banks for collateral-free crop loans up to ₹2 lakh.
- Request includes members of RMGs and JLGs who have repaid loans consistently.
- Loans to be accessed via Kisan Credit Cards (KCCs) and align with RBI collateral-free limits and the Scale of Finance adjustments.

## What Happened

The Andhra Pradesh Tenant Farmers’ Association told state authorities and banks to extend unsecured crop loans of up to ₹2 lakh to tenant farmers, including members of Rythu Mitra Groups (RMGs) and Joint Liability Groups (JLGs). The request was conveyed through a representation addressed to Agriculture Department Special Chief Secretary B. Rajasekhar. The association emphasized that eligible tenant farmers should receive crop loans via Kisan Credit Cards (KCCs) and pointed to non-compliance with the Scale of Finance for various crops.

Association leaders M. Haribabu (state secretary) and V. Krishnaiah (Andhra Pradesh Rythu Sangham State president) argued that RBI guidelines permit collateral-free agricultural loans up to ₹2 lakh, but this benefit has not been effectively implemented for tenant farmers and group members in Andhra Pradesh. They noted that earlier guidelines allowed collateral-free crop loans up to ₹1 lakh, but the Scale of Finance for crops has since risen to reflect higher cultivation costs. They claimed banks were erecting hurdles in extending loans beyond ₹1 lakh, even to groups and individuals with regular repayment histories.

## Why It Matters

The demand centers on aligning lending practices with RBI guidelines and recent changes to collateral-free loan limits, aiming to improve access to credit for tenant farmers who otherwise face barriers in obtaining crop finance. If implemented, the move could influence how RMGs and JLG members access credit under the KCC scheme during a period of rising cultivation costs.

## Background

The report notes prior limits on collateral-free agricultural loans and references the Scale of Finance adjustments that accompanied rising cultivation costs. It situates the issue within ongoing discussions about loan accessibility for tenant farmers and group-based farming structures in Andhra Pradesh.

## Key Facts

- Tenant Farmers’ Association in Andhra Pradesh submitted a representation to Agriculture Department Special Chief Secretary B. Rajasekhar requesting unsecured crop loans up to ₹2 lakh for tenant farmers.

- The beneficiaries include members of Rythu Mitra Groups (RMGs) and Joint Liability Groups (JLGs) who have a track record of repaying bank loans.

- The request specifies that loans should be disbursed through Kisan Credit Cards (KCCs).

- Association leaders cited RBI guidelines permitting collateral-free agricultural loans up to ₹2 lakh and argued these are not being effectively implemented for tenant farmers and group members in Andhra Pradesh.

- They stated that collateral-free limits had previously been ₹1 lakh, and that the Scale of Finance for crops has been increased to reflect higher cultivation costs.

- Banks were described as creating hurdles in extending crop loans beyond ₹1 lakh to groups and individual members with good repayment histories.

## What Happens Next

The report does not specify a firm next-step timetable. It notes that the representation was submitted to the state Agriculture Department’s Special Chief Secretary, implying that the government’s response or action would follow the submission.

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Canonical: https://projectchintan.com/article/andhra-pradesh-tenant-farmers-loans-gfek2
Reported from: Multiple Sources