Lok Sabha Question No. 326 (STARRED), answered on 2017-03-24
Subject: Loan to Farmers
Ministry: FINANCE
Asked by: J.C. DIVAKAR REDDY

## Government of India Ministry of Finance Department of Financial Services

## LOK  SABHA

Starred Question No. *326

To be answered on Friday, March 24, 2017/Chaitra 3, 1939 (Saka)

## Loan to Farmers

*326 Shri J.C DIVAKAR REDDY

Will the Minister of FINANCE be pleased to state:

- (a) the details of schemes implemented by the Government/banks for providing loan to the  small  and  marginal  farmers  and  landless  labourers  for  meeting  their  various consumption needs;
- (b) the guidelines and criteria laid down for disbursement of loan to the farmers; and
- (c) the quantum of loans provided under various schemes by banks during the last three years and the current year, State/UT-wise including Andhra Pradesh?

Answer The Minister of Finance (Shri Arun Jaitley)

- (a) to (c): A Statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (c) of LokSabha Starred Question No. *326 to be answered on 24.03.2017 regarding Loan to Farmers tabled by Shri J.C Divakar Reddy.

(a) & (b) : The Government/ Reserve Bank of India (RBI)/National Bank for Agriculture & Rural  Development  (NABARD)  have,  inter  alia,  taken  the  following  major  steps  for providing  hassle  free  crop  loan  to  farmers  including  small  and  marginal  farmers  and landless labourers :-

-  As per Reserve Bank of India (RBI) directions, Domestic Scheduled Commercial Banks  are  required  to  lend  18%  of  the  Adjusted  Net  Bank  Credit  (ANBC)  or Credit Equivalent to Off-Balance Sheet Exposure (CEOBE), whichever is higher, towards agriculture. A sub-target of 8% is also prescribed for lending to small and  marginal farmers including to landless agricultural labourers, tenant farmers,  oral  lessees  and  share  croppers.  Similarly,  in  the  case  of  Regional Rural Banks 18% of their total outstanding advances is required to be towards agriculture  and  a  sub-target  of  8%  has  been  set  for  lending  to  small  and marginal farmers.
-  Government fixes agriculture credit disbursement targets for the banking sector every year and banks have consistently surpassed these targets.
-  Government of India implements an Interest Subvention Scheme to ensure that Short  Term  Crop  loans  up  to  Rs.  3  lakh  are  available  to  the  farmers  at  a reduced  interest  rate  of  7%  p.a.  An  additional  3%  incentive  is  given  to  the farmers for prompt repayment of the loan, reducing the effective rate of interest to 4%.
-  Under the Kisan Credit Card (KCC) Scheme, a flexible limit of Rs. 10,000 to Rs. 50,000 has been provided to marginal farmers (as Flexi KCC) based on the land holding  and  crops  grown  including  post  harvest  warehouse  storage  related credit needs and other farm expenses, consumption needs, etc., plus small term loan investments without relating it to the value of land.
-  Small, marginal, tenant farmers, oral lessees, etc. have been brought into the fold  of  institutional  credit  through  Joint  Liability  Groups  (JLGs)  promoted  by banks, which are sanctioned crop loans on relaxed terms. As on 31.03.2016, 17.52  lakh  JLGs  have  been  provided  Rs.  17336.95  crore  credit  by  banks  as reported by NABARD.

(c): Agriculture credit extended by Banks, for the last three years (2013-14 to 2015-16) and the current year upto Dec, 2016 is given in Annexure.

## Anneuxre to SQ 326 for 24.03.2017

## State wise  Agriculture credit Disbursement for last 3 years (2013-14 to 2015-16)

| S.No.   | State/UT                   | 2013-14     | 2014-15     | 2015-16     | 2016-17 (Provisional, up to Dec. 2016)*   |
|---------|----------------------------|-------------|-------------|-------------|-------------------------------------------|
| 1       | DELHI                      | 10,350.51   | 15,264.01   | 8,334.40    | 16,442.49                                 |
| 2       | HARYANA                    | 35,751.88   | 40,438.48   | 49,790.49   | 37,424.46                                 |
| 3       | HIMACHAL PRADESH           | 4,554.34    | 4,964.12    | 5,121.94    | 4,823.77                                  |
| 4       | JAMMU & KASHMIR            | 2,333.17    | 766.00      | 2,761.46    | 5,560.77                                  |
| 5       | PUNJAB                     | 58,473.62   | 72,962.98   | 84,652.89   | 57,608.54                                 |
| 6       | RAJASTHAN                  | 54,777.24   | 65,743.36   | 67,627.26   | 49,152.66                                 |
| 7       | CHANDIGARH UT              | 1,572.32    | 2,339.92    | 1,986.94    | 1,112.03                                  |
|         | Northern Region Total      | 1,67,813.07 | 2,02,478.87 | 2,20,275.38 | 1,72,124.71                               |
| 8       | ARUNACHAL PRADESH          | 53.88       | 49.91       | 171.03      | 103.56                                    |
| 9       | ASSAM                      | 2,693.91    | 2,751.03    | 3,905.48    | 4,110.56                                  |
| 10      | MANIPUR                    | 112.39      | 152.55      | 16.15       | 197.43                                    |
| 11      | MEGHALAYA                  | 246.57      | 195.94      | 108.05      | 298.94                                    |
| 12      | MIZORAM                    | 70.19       | 70.20       | 99.13       | 76.63                                     |
| 13      | NAGALAND                   | 108.52      | 134.91      | 117.81      | 99.66                                     |
| 14      | SIKKIM                     | 80.87       | 75.48       | 71.61       | 150.91                                    |
| 15      | TRIPURA                    | 979.14      | 1,022.71    | 1,280.55    | 1,026.25                                  |
|         | North Eastern Region Total | 4,345.46    | 4,452.73    | 5,769.81    | 6,063.93                                  |
| 16      | A & N ISLAND               | 99.44       | 66.47       | 103.60      | 106.78                                    |
| 17      | BIHAR                      | 20,177.87   | 22,863.88   | 40,542.31   | 20,074.98                                 |
| 18      | JHARKHAND                  | 1,959.65    | 2,518.36    | 3,661.85    | 2,958.20                                  |
| 19      | ODISHA                     | 15,023.25   | 17,270.58   | 18,250.76   | 14,672.14                                 |
| 20      | WEST BENGAL                | 18,956.73   | 37,293.73   | 39,074.59   | 23,813.53                                 |
|         | Eastern Region Total       | 56,216.93   | 80,013.02   | 1,01,633.11 | 61,625.62                                 |
| 21      | CHHATTISGARH               | 6,555.83    | 7,872.01    | 8,476.67    | 9,508.58                                  |
| 22      | MADHYA PRADESH             | 38,631.75   | 47,048.58   | 52,104.01   | 45,720.33                                 |
| 23      | UTTARAKHAND                | 6,464.24    | 5,586.47    | 6,335.73    | 4,926.72                                  |
| 24      | UTTAR PRADESH              | 59,276.81   | 72,611.36   | 37,328.86   | 60,179.52                                 |
|         | Central Region Total       | 1,10,928.63 | 1,33,118.42 | 1,04,245.28 | 1,20,335.15                               |
| 25      | GOA                        | 607.21      | 777.31      | 575.77      | 1,001.07                                  |
| 26      | GUJARAT                    | 33,621.71   | 39,326.72   | 44,563.20   | 46,000.73                                 |

| 27   | MAHARASHTRA           | 61,137.69   | 66,821.29   | 62,776.80   | 76,103.06   |
|------|-----------------------|-------------|-------------|-------------|-------------|
| 28   | D & N HAVELI UT       | 34.66       | 29.84       | 8.42        | 79.81       |
| 29   | DAMAN & DIU UT        | 19.10       | 26.05       | 19.64       | 24.26       |
|      | Western Region Total  | 95,420.36   | 1,06,981.21 | 1,07,943.83 | 1,23,208.92 |
| 30   | ANDHRA PRADESH        | 83,585.72   | 53,936.21   | 74,135.94   | 68,806.76   |
| 31   | TELANGANA             | 7,949.71    | 30,516.66   | 28,999.64   | 47,493.10   |
| 32   | KARNATAKA             | 51,879.15   | 60,233.00   | 84,832.48   | 55,624.29   |
| 33   | KERALA                | 50,799.37   | 57,209.01   | 43,392.34   | 47,095.75   |
| 34   | PUDUCHERRY            | 1,277.59    | 15,930.12   | 1,081.56    | 3,915.43    |
| 35   | TAMILNADU             | 99,905.55   | 1,00,225.77 | 1,05,217.67 | 1,00,397.97 |
| 36   | LAKSHADWEEP UT        | 1.07        | 233.21      | -           | 1,626.55    |
|      | Southern Region Total | 2,95,398.16 | 3,18,283.98 | 3,37,659.64 | 3,24,959.84 |
|      | GRAND TOTAL           | 7,30,122.62 | 8,45,328.23 | 8,77,527.04 | 8,08,318.18 |

Source: NABARD