Tollywood impacted by increasing interests on loans payments

Tollywood impacted by increasing interests on loans payments. The stalling of Balakrishna's Akhanda2 over non payment of loans shocked all. At that time, reports came that even The Raja Saab would meet the same fate.

However, TG.Vishwa Prasad, producer of Raja Saab assued that he had cleared all the loans and will settle in interest among soon. A star producer said “Several producers today are borrowing and sometimes paying more interest than the original principal, losing their peace and sleep,”

He says  “With every passing month, interest mounts and compounds the problem,” as directors in the name of creative freedom incraesing the shooting days. The producer said “Directors must realise that the entire financial risk rests on the producer,” and said that each additional day costs around Rs 10 to Rs 50 lakhs.

Raj Kandukuri shares that no body has cash to produce high budget films like Pushpa: The Rule, Game Changer, Kalki 2898 AD, They Call Him OG, Daaku Maharaj and Hari Hara Veera Mallu and said “Nobody has that kind of cash,” and shares “Films with budgets exceeding Rs 100 crore are almost entirely financed by private financiers.”

He says “Until the financier confirms that all dues are cleared and issues a no-objection certificate (NOC), the film cannot be released without hurdles,” revealing "producers typically enter into tripartite agreements involving the financier and the film laboratory (now DI centres)."

Producer Lagadapati Sridhar shares “Financing is crucial for any industry to survive, but unfortunately Telugu cinema is no longer in a healthy position,” and adds  “When I recently tried to raise funds for a project, I realised there are barely two active financiers left. Most others have shut shop.”

He shares “Getting funds without collateral is nearly impossible. Only the top five or six stars can secure financing, and even they rely heavily on OTT advances and Hindi distribution rights,” and reveals "few remaining private financiers charge steep interest rates ranging from 18 to 24 percent per annum and prefer backing only films starring top-tier heroes."