Not Just AP, People Are Also Taking High Borrowings!

Thu Mar 16 2023 12:49:18 GMT+0530 (India Standard Time)

It is an open secret that Andhra Pradesh's financial condition is not in a good shape and it needs no introduction. The opposition parties are expressing concerns about the economy and are worried that the state would turn into another Sri Lanka if the required measures are not taken. The Union Government also said that AP is among the states that take high borrowings.

When a lot is being talked and discussed about the financial status of the state, a new thing has come out which says that not just the state, but people in AP are also taking out loans in big numbers. In a national survey sample, shocking details were found.

The survey said that 46,330 people out of every one lakh people took loans due to various reasons. The percentage is very big as half of them are in debt. Over one lakh samples were collected for the survey and found that the majority of people are in debt.

Drawing a comparison between the rural and urban areas. The percentage of people with debts is high in rural areas. Compared to men, women take more loans. In the urban areas, men took more loans. In total, people in Andhra Pradesh have more debt than the national average.

The Survey was conducted in a way that people who have loans of over Rs 500 and have unpayable loans are surveyed. The loans are segregated into two types-one is institutional and the second one is personal. While loans taken from the government, banks, cooperative bodies, and others are considered institutional, loans taken from friends, relatives, and others are seen as personal.

This tells how deeply people are in debt. People in rural and urban areas are taking loans and both men and women are taking loans. Though the percentage of loans between men and women changes based on the area, the loan factor remains the same.

However, the sample survey did not give a reason for the loans taken by people. The reasons might be many as the loans taken by people in the state are quite high than the national average.

Looking at the debts from a bigger lens, Telangana, Kerala, and Tamil Nadu are in the next order. Overall in India, Uttar Pradesh has a big number of loan takers. Drawing a comparison between Andhra Pradesh and Telangana, AP has 17 percent more loan takers.