Bank fails to sanction loans, angry farmers burn LECs
Guntur, July 26 (INN): Angry farmers left the state government red-faced on Tuesday after burning the much hyped Loan Eligibility Cards in front of the Andhra Bank at Jammalapalem village in Bapatla in Guntur district for the failure of the Bank to sanction loans despite they possessing LECs.
Raising slogans against the bank officials' indifferent attitude of not sanctioning crop loans despite submission of LECs, the farmers squarely blamed the state government of having failed to help them.
The irate farmers also alleged that the LECs, which were distributed after a massive hype, are not serving any purpose since the bank officials were not sanctioning any loans. They demanded that the state government direct the banks to provide loans for crops.
The LECs were given to tenant farmers across the state as part of government's bid to help the cardholders obtain crop loans, input subsidy, crop insurance, seeds and fertilizers, crop compensation and any other relief announced and distributed by the government.
The LECs have been given to tenant farmers who can obtain the loans, without making the land owners liable for repayment. However, the Banks and Financial Institutions are said to be wary of extending the facilities.
News Posted: 26 July, 2011