Lok Sabha Question No. 4636 (UNSTARRED), answered on 2018-03-23
Subject: Revised Targets for Agricultural Loans
Ministry: FINANCE
Asked by: RANGASWAMY DHRUVANARAYANA, HARI NARAYAN RAJBHAR

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

## LOK SABHA

Unstarred Question No. †4636

To be answered on Friday, March 23, 2018/Chaitra 2, 1940 (Saka)

## Revised Targets for Agricultural Loans

†4636. SHRI R. DHRUVA NARAYANA: SHRI HARINARAYAN RAJBHAR:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government proposes to revise the targets for Public Sector Banks (PSBs) by increasing the target by 10 per cent during the next financial year i.e. 2018-19;
- (b) if so, the details thereof;
- (c) the number of proposals for agricultural loan pending with the PSBs during the said period, bank-wise, State/ UT-wise including Rajasthan; and
- (d) the steps taken/being taken by the banks to provide hassle free loan to farmers?

## Answer

The Minister of State in the Ministry of Finance (Shri Shiv Pratap Shukla)

- (a)  to  (c):  Yes,  Madam. The Government has fixed the agriculture credit target of Rs. 11 lakh crore for the year 2018-19 against the target of Rs. 10 lakh crore for the year 2017-18.

Reserve Bank of India (RBI) has reported that the information on proposals for agricultural loan pending with the Public Sector Banks (PSBs), are not maintained centrally.

- (d): The following major initiatives have been taken by the Government/Reserve Bank of India (RBI) to provide hassle free crop loan to farmers:-
-  As per 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.
-  With a view to ensure availability of agriculture credit at a reduced interest rate of 7% p.a. to  the  farmers,  the  Government  of  India  in  the  Department  of  Agriculture,  Cooperation  and Farmers' Welfare implements an interest subvention scheme for short term crop loans up to Rs. 3.00 lakh. The scheme provides interest subvention of 2% per annum to Banks on use of their own resources.  Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.
-  Government  fixes  agriculture  credit  disbursement  targets  for  the  banking  sector  every year and banks have consistently surpassed these targets.
-  The Government has introduced the Kisan Credit Card (KCC) Scheme, which enables farmers  to  meet  the  short  term  credit  requirements  for  cultivation  of  crops;  Post-harvest expenses;  Produce  marketing  loan;  Consumption  requirements  of  farmer  household;  Working capital for maintenance of farm assets and activities allied to agriculture; and Investment credit requirement  for  agriculture  and  allied  activities.The  KCC  Scheme  provides  for  issue  of  ATM enabled  RuPay  debit  card  with,  inter  alia,  facilities  of  one-time  documentation,  built-in  cost escalation in the limit, any number of drawals within the limit, etc.
-  RBI has conveyed to Banks to waive margin/security requirements of agricultural loans upto  Rs.1,00,000/-.  The  requirement  of  'no  due'  certificate  has  also  been  dispensed  with  for small  loans  up  to  Rs.50,000  to  small  and  marginal  farmers,  share-croppers  and  the  like  and, instead, only a self-declaration from the borrower is required.