Crop Loans Remain Out of Reach for Tenant Farmers

Commercial banks in Andhra Pradesh are showing limited interest in extending crop loans to tenant farmers. Despite repeated appeals from the government, banks have been disbursing loans only on a limited scale. Even after setting annual targets, the loan distribution to tenant farmers has remained far below expectations.

According to official data, banks sanctioned only ₹905.8 crore to 69,832 accounts against a target of ₹2,191.3 crore for 2,58,310 accounts in 2022-23. In 2023-24, only ₹323.7 crore was disbursed to 37,243 accounts against the same target. During 2024-25, banks provided ₹510 crore to 41,205 accounts against a target of ₹2,100 crore.

The situation improved in 2025-26, with banks sanctioning ₹1,666.2 crore to 2,03,432 accounts against a target of ₹3,000 crore for 2,94,395 accounts. Loan achievement rates stood at 41 percent in 2022-23, 15 percent in 2023-24, 24 percent in 2024-25, and 56 percent in 2025-26. The State Level Bankers' Committee has proposed providing nearly ₹5,000 crore to tenant farmers out of the ₹2 lakh crore crop loan target for 2026-27.

2022-23 Target – ₹2,191.3 crore

2022-23 Disbursement – ₹905.8 crore

2023-24 Disbursement – ₹323.7 crore

2024-25 Disbursement – ₹510 crore

2025-26 Target – ₹3,000 crore

2025-26 Disbursement – ₹1,666.2 crore

2022-23 Loan Achievement Rate – 41%

2023-24 Loan Achievement Rate – 15%

2024-25 Loan Achievement Rate – 24%

2025-26 Loan Achievement Rate – 56%

2026-27 Proposed Loans – ₹5,000 crore.