AP and Telangana begin loans hunt!

Both the Telugu States have started hunts for loans. They are planning to sell financial bonds to financial firms which are ready to give loans. The entire process will take place through RBI monitored e-auctions. The auction will take place on September 9th and RBI will finalize the firms that are quoting least interest rates. These loans are called State Development Loans and the governments will have to repay the principal amount after 10 years but will be paying interests every three months.

This is the first time both the states are making money by selling bonds after the bifurcation. Telangana is targeting 2000 Crores and AP is targeting loans of 1500 Crores through this auctions. These auctions are set to continue every months from now. Both the new governments have come in to power after making several promises and are looking at various ways of revenue generation for aiding their welfare schemes.