Anantapur MP wants PM to slash interest rates on tractors

Anantapur Member of Parliament Talari Rangaiah on Sunday write a letter to Prime Minister Narendra Modi searching for his intervention in reducing/slashing the interest rates charged by all banks within the nation for ‘Tractor Loans’ which are primarily utilised by the poor farming group.

A replica of his letter to the Prime Minister launched to the media identified on the massive distinction in rates of interest charged on luxurious vehicles and tractor loans each by the PSU and personal banks, which he mentioned must be worn out or tractor loans charged at a decrease price of interest than the posh vehicles. “While a loan for a luxury car can be obtained at 7% annual interest rate with lower downpayment and longer term of repayment, the tractor loans are charged between 12.5% and 14% by the banks with a shorter repayment period,” Mr. Rangaiah wrote.

The agricultural debt burden, he mentioned was taking 10,000 lives a yr within the nation, and the tractors loans are one of many elements contributing to this tragedy, he opined. “We do not know, why this a lot sympathy for luxurious vehicles and why this antipathy in the direction of our kisans,” he questioned. Tractors are important commodities and never for luxurious as it’s meant for incomes a livelihood.

Most of the Adivasi and Dalit farmers get loans at a 12.5% or 14% interest price, due to this fact, a farmer repays ₹ 9 lakh on an ₹ 5.75 lakh mortgage for a tractor costing ₹ 6.35 lakh. “I request you to instruct the bankers to reduce interest rates on tractor loans on a par with luxury cars,” he concluded.