Telangana to lift ban on farm mortgages; Land Revenue Act to be amended
Hyderabad: The Telangana state government is all set to lift the ban on the mortgaging of farmlands to secure loans for purposes other than agriculture.
Despite having several acres of farmland, the owners are unable to avail loans for necessities like education of their children.
The existing rules do not permit landowners to mortgage agricultural lands. They can only secure crop loans. The Land Revenue Act will be amended for the purpose.
There has been a long-pending demand from landowners, mainly farmers, to allow them to mortgage their lands to secure loans, other than crop loans to meet their needs, especially the educational needs of their children.
Farmers in villages had petitioned the government that their children are pursuing professional courses like engineering, medicine, management etc in Hyderabad and other cities and some want to go abroad for higher studies taking educational loans. They pointed out that the banks were refusing loans other than crop loans though they are willing to mortgage their farmlands with banks.
They pointed out that those having properties in urban areas could easily secure loans for their children by mortgaging these with banks but they were not in a position to do so, despite owning land in rural areas while their children were studying in cities.
Some landowners and farmers said they planned to start their own business by securing loans by mortgaging their farmlands, which is not being allowed as per existing norms.
Sources in the Chief Commissioner of Land Administration said the department has already put up a file with the government seeking lifting of the ban on mortgaging farm loans.
Chief Minister K. Chandrasekhar Rao too is learnt to be in favour of lifting the ban and asked revenue officials to draft an Act amending the existing norms so that it would be passed in the next session of Legislature in September. Officials are in the process of finalising the modalities for the purpose.
