The AP State government in the Month of May 2013 announced that it had allocated 500 crore Rupees in the 2013-14 budget to meet the expenditure under interest free agricultural loans.
The AP government has been implementing this scheme for years to save farmers from interest burdens on agricultural loans.
As per the Finance Minister of Andhra Pradesh Anam Ramnarayana Reddy, any farmer who repays his agricultural loan within a period of 12 months is eligible for the interest free agricultural loan scheme under which the government has already disbursed 140 crore Rupees.
The State Government had released 1662 crore Rupees to clear dues under the input subsidy scheme to drought-hit tehsils of the state, besides another 428 crore Rupees released as input subsidy to cyclone affected areas.
It is worth mentioning that the dues to farmers would be paid directly to their accounts and requested farmers to open no-frills accounts in any commercial bank convenient to them.