Lok Sabha Question No. 289 (STARRED), answered on 2017-08-04
Subject: Repayment of Loans
Ministry: FINANCE
Asked by: PARAYAMPARANBIL KUTTAPPAN BIJU

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

## LOK SABHA Starred Question No. 289 To be answered on August 4, 2017/Shravana 13, 1939 (Saka) Repayment of Loans Friday,

*289. DR PK BIJU:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has conducted any on borrowers who are unable to repay their loans and those Who have defaulted in repayment of loans Ketheawake of successive droughts in various parts of the country particularly in Kerala; study
- (b) if so, the details thereof with the number of borrowers and the total amount of loans   sanctionedlgranted in the above   categories, State and category-wise, as on date; and along
- (c)ewhether the Government is considering to waive off the above loans as a relief fmeasure to the farmers, if so, the detials thereof and if not; the reasons therefor?

## Answer

Finance Minister (Shri  ArunJaitely) The

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

Statement referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. 289 to be answered on 04.08.2017 regarding Repayment of Loans tabled by Dr P.K BIJU:

- (a) to (c): While no such specific study has been conducted the Government has taken the following initiatives to reduce the debt burden of farmers:
- With a view to ensuring availability of agriculture credit at a reduced interest rate of 7% p.a to farmers; the Government of India in the Department of Agriculture, Cooperation & Farmers' Welfare implements an interest subvention scheme for short term crop loans up to Rs. 3.00 lakh: Under the said scheme, additional subvention of 3% is given to those farmers who repay their short term crop loan in time, thereby reducing the effective rate of interest to 4% p.a: for such farmers.
- Reserve Bank of India (RBI) has issued master directions on relief measures to be provided by lending institutions in areas affected by natural calamities including drought which; inter alia, include   identification of  beneficiaries,  extending   fresh loans and restructuring of existing loans; relaxed security and margin norms, moratorium, etc; The benchmark for restructuring of loans has been reduced from 50% to 33% crop loss, in line Lending Guidelines issued by RBI, loans to distressed farmers to repay non-institutional lenders, are eligible under priority sector.
- Pradhan MantriFasalBimaYojana (PMFBY) provides a comprehensive insurance cover against failure of insured crops due to non-preventable natural risks, thus providing financial support to farmers suffering lossl damage arising out of unforeseen events; stabilizing the income of farmers to ensure their continuance in farming; and encouraging them to adopt innovative and modern agricultural practices. crop
- For   development of   agriculture and welfare of   farmers the Government in Department of Agriculture Cooperation and Farmers Welfare (DAC&FW), is implementing various Central Sectorl Centrally Sponsored Schemes, which include:
- (i) RashtriyaKrishiVikasYojana (RKVY)
- (iii) National Agriculture Market (e-NAM)
- (ii) National Food Security Mission (NFSM)
- (iv) National Mission For Sustainable Agriculture (NMSA)
- Post demonetisation, Government has taken the following relief measures for the farmers in the cooperative sector:
- An additional grace period of 60 days for prompt repayment incentive 3% was provided to such  farmers whose crop fell due  between 01/11/2016 to 31/12/2016 and if such farmers repaid the same within 60 days from their due date in this period.
- (ii) Interest waiver for two months (November and December; 2016) for all short term crop Banks between 01.04.2016 to 30.09.2016 and upfront deposit of the same in the accounts of the concerned farmers.
- (iii) National Bank For Agriculture And Rural Development (NABARD) raised short term borrowings from the market at prevailing market rate of interest for <17,880.78 crore and disbursed the same under refinance for on-lending to Cooperative Banks at 4.5% rate of interest during 2016-17 .

There is no proposal under consideration of the Union Government to waive off loans of farmers,