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Starved for credit after crisis hit the micro-finance sector, self-help groups (SHGs) are expected to consume 16 per cent more loans in the next financial year at Rs 10,316 crore against Rs 8,919 crore this year.
This is among four-five other areas of economic activity that will drive credit potential in Andhra Pradesh to Rs 85,326 crore in 2012-13 from Rs 70,849 crore in 2011-12, showing an increase of 20.4 per cent. The National Bank for Agriculture and Rural Development (Nabard) came out with an estimation of credit potential for the ensuing financial year on Tuesday. This customary report acts as guidance for State agencies and bankers who prepare annual credit plans.
Crop loans
Farmers might need crop loans to the tune of Rs 40,330 crore next year against Rs 33,528 crore. Term loan component will go up to Rs 12,381 crore from Rs 10,531 crore, Mr P. Mohanaiah, Chief General Manager of Nabard (Andhra Pradesh), said, talking on the State Focus Paper for 2012-13. Non-farm sector would consume Rs 8,573 crore (Rs 7,157 crore), while other verticals in the priority sector would need Rs 24,042 crore (Rs 19,633 crore).
Mr S.K. Mitra, Executive Director of Nabard, said credit requirement of the farm sector was expected to touch Rs 40 lakh crore during the next Five-Year Plan, with Andhra Pradesh expecting to take a share of 10 per cent.
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