Lok Sabha Question No. 1808 (UNSTARRED), answered on 2018-07-27
Subject: Interest Rates on Agricultural Loans
Ministry: FINANCE
Asked by: REKHA ARUN VERMA, T.G. VENKATESH BABU, KRUPAL BALAJI TUMANE, SADASHIV KISAN LOKHANDE, ABHISHEK SINGH

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

Unstarred Question No. 1808 To be answered on Friday, July 27, 2018/Shravana 5, 1940 (Saka)

## Interest Rates on Agricultural Loans

## 1808.  SHRIMATI  REKHA  VERMA:  SHRI  VENKATESH  BABU  T.G.:  SHRI  KRUPAL BALAJI TUMANE: SHRI SADASHIV LOKHANDE: SHRI ABHISHEK SINGH.

Will the Minister of FINANCE be pleased to state:

- (a)    whether  the  Government  has  reduced  the  interest  rates  on  agricultural  loans provided  to  farmers  by  the  Public  Sector  Banks  (PSBs)/Cooperative  Banks/  NABARD during the last three years and if so, the details thereof;
- (b) whether the Government has laid down guidelines/norms for providing interest/interest free agricultural loans to the farmers and if so, the details thereof;
- (c)      whether  instances  of  violation  of  these  guidelines  have  been  reported  by  various banks  during  the  last  three  years,  if  so,  the  details  thereof,  bank-wise  along  with  the corrective steps taken by the Government in this regard;
- (d)   the details and percentages of agricultural loan disbursed, target set and achieved and interest rate charged by the Bank for sanctioning of loans along with the total amount of  outstanding  loan  against  them  during  the  last  three  years  and  the  current  year, State/UT-wise including Maharashtra; and
- (e)    the steps taken/being taken by the Government to provide affordable rate of interest on crop loans so far?

## Answer The Minister of State in the Ministry of Finance

(Shri Shiv Pratap Shukla)

(a)  to  (e):  Reserve  Bank  of  India  (RBI)  has  deregulated  the  interest  rate  on  advances sanctioned by Scheduled Commercial Banks and these interest rates are determined by banks  with  the  approval  of  their  respective  Board  of  Directors  subject  to  applicable regulatory guidelines.

However, 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  (DAC&FW)  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%.

National Bank for Agriculture and Rural Development (NABARD) has reported that they have no information on instances of violation of these guidelines. RBI has reported that complaints received by them are taken up promptly with concerned banks for remedial action. Further, as reported by RBI, there are no  specific complaints regarding irregularities in interest rate on Kisan Credit Card (KCC) pending with RBI.

The State/ UT-wise agriculture credit target and loans disbursed and outstanding loans during the last three years, as reported by NABARD is at Annexure I & II.

| S.No.                | State/UT                   | Agriculture Credit Disbursement Data (Rs.   | Agriculture Credit Disbursement Data (Rs.   | Annexure All Agencies   | Annexure All Agencies   | 2017-18        | 2017-18        |
|----------------------|----------------------------|---------------------------------------------|---------------------------------------------|-------------------------|-------------------------|----------------|----------------|
| S.No.                | State/UT                   | Target 2015-16                              | Disbursement                                | Target                  | Disbursement 2016-17    | Target         | Disbursement   |
| 1                    | DELHI                      | 8100                                        | 554974.47                                   | 9800.00                 | 1994164.972             | 61200          | 1959799.17     |
| 2                    | HARYANA                    | 5665000                                     | 4979049.00                                  | 5865000.00              | 4948107.128             | 6065000        | 5551071.86     |
| 3                    | HIMACHAL PRADESH           | 510000                                      | 512193.53                                   | 595000.00               | 611614.5564             | 625000         | 1433919.48     |
| 4                    | JAMMU &KASHMIR             | 145000                                      | 276146.16                                   | 168000.00               | 729674.0637             | 460000         | 1130172.98     |
| 5                    | PUNJAB                     | 7650000                                     | 8465288.56                                  | 7940000.00              | 7430146.824             | 8095000        | 7320150.96     |
| 6                    | RAJASTHAN                  | 6560000                                     | 6762726.22                                  | 6820000.00              | 7430385.604             | 7605000        | 8098976.83     |
| 7                    | CHANDIGARH UT              | 11000                                       | 141536.00                                   | 12000.00                | 140594.6034             | 10000          | 235818.44      |
|                      | Northern Region Total      | 205,49,100.00                               | 216,91,913.94                               | 214,09,800.00           | 232,84,687.75           | 229,21,200.00  | 257,29,909.72  |
| 8                    | ARUNACHAL PRADESH          | 30100                                       | 4282.18                                     | 25800.00                | 13258.66058             | 37600          | 8342.09        |
| 9                    | ASSAM                      | 520500                                      | 390547.53                                   | 571000.00               | 610207.4098             | 714000         | 675613.84      |
| 10                   | MANIPUR                    | 34300                                       | 15867.18                                    | 41800.00                | 25112.17491             | 65200          | 27280.04       |
| 11                   | MEGHALAYA                  | 34200                                       | 15627.14                                    | 42500.00                | 36831.05286             | 66000          | 35073.62       |
| 12                   | MIZORAM                    | 20300                                       | 9912.84                                     | 24600.00                | 11435.63322             | 27300          | 17493.61       |
| 13                   | NAGALAND                   | 31500                                       | 11816.65                                    | 38800.00                | 12939.20706             | 38400          | 20501.71       |
| 14                   | SIKKIM                     | 14100                                       | 7161.36                                     | 19900.00                | 16169.64758             | 24800          | 12499.28       |
| 15                   | TRIPURA                    | 100000                                      | 128054.76                                   | 109300.00               | 151312.5343             | 178000         | 232572.61      |
|                      | North Eastern Region Total | 7,85,000.00                                 | 5,83,269.64                                 | 8,73,700.00             | 8,77,266.32             | 11,51,300.00   | 10,29,376.80   |
| 16                   | A &NISLAND                 | 12800                                       | 11184.38                                    | 14800.00                | 13498.20389             | 23000          | 12023.51       |
| 17                   | BIHAR                      | 3620000                                     | 4054231.00                                  | 3890000.00              | 2618458.375             | 3798000        | 2698673.37     |
| 18                   | JHARKHAND                  | 524000                                      | 366183.81                                   | 691500.00               | 437999.1831             | 696000         | 378093.39      |
| 19                   | ODISHA                     | 2152500                                     | 2028270.04                                  | 2435000.00              | 2126496.465             | 2992000        | 2277721.45     |
| 20                   | WEST BENGAL                | 3997000                                     | 3907458.44                                  | 4247000.00              | 3489572.322             | 5505000        | 4092023.21     |
|                      | Eastern Region Total       | 103,06,300.00                               | 103,67,327.67                               | 112,78,300.00           | 86,86,024.55            | 130,14,000.00  | 94,58,534.93   |
| 21                   | CHHATTISGARH               | 1013000                                     | 767426.11                                   | 1130000.00              | 1223742.133             | 1300000        | 1519922.76     |
| 22                   | MADHYA PRADESH             | 5975000                                     | 5210400.35                                  | 6355000.00              | 5614906.412             | 6568000        | 6043188.47     |
| 23                   | UTTARAKHAND                | 618800                                      | 586937.77                                   | 670000.00               | 650543.4181             | 975000         | 788127.24      |
| 24                   | UTTAR PRADESH              | 8430000                                     | 8764167.01                                  | 8870000.00              | 8158401.411             | 10790000       | 8513614.74     |
|                      | Central Region Total       | 160,36,800.00                               | 153,28,931.24                               | 170,25,000.00           | 156,47,593.37           | 196,33,000.00  | 168,64,853.21  |
| 25                   | GOA                        | 78000                                       | 56711.46                                    | 83500.00                | 101127.6641             | 128500         | 124550.64      |
| 26                   | GUJARAT                    | 4990000                                     | 4456320.39                                  | 5310000.00              | 5427669.753             | 5810000        | 6268293.45     |
| 27                   | MAHARASHTRA                | 6111500                                     | 6277679.78                                  | 6471500.00              | 8138383.631             | 6965000        | 7672266.1      |
| 28                   | D &NHAVELI UT              | 2200                                        | 2026.85                                     | 2600.00                 | 8017.098278             | 11100          | 6584.22        |
| 29                   | DAMAN&DIUUT                | 2100                                        | 644.67                                      | 2600.00                 | 3458.32316              | 4900           | 3325.96        |
|                      | Western Region Total       | 111,83,800.00                               | 107,93,383.15                               | 118,70,200.00           | 136,78,656.47           | 129,19,500.00  | 140,75,020.37  |
| 30                   | ANDHRA PRADESH             | 5392500                                     | 7413594.20                                  | 5712500.00              | 9286862.137             | 6060000        | 11342747.74    |
| 31                   | TELANGANA                  | 3765000                                     | 3332568.03                                  | 4035000.00              | 6788535.432             | 5190000        | 5890751.41     |
| 32                   | KARNATAKA                  | 5340000                                     | 8483248.35                                  | 5560000.00              | 7808272.116             | 5492500        | 7938377.02     |
| 33                   | KERALA                     | 4068000                                     | 4339237.06                                  | 4288000.00              | 6773876.454             | 3955000        | 8417707.69     |
| 34                   | PUDUCHERRY                 | 78500                                       | 108155.84                                   | 91700.00                | 529008.4231             | 433200         | 260798.66      |
| 35                   | TAMILNADU                  | 7494000                                     | 9109362.38                                  | 7854000.00              | 13214456.68             | 9225000        | 15841700.46    |
| 36                   | LAKSHADWEEP UT             | 1000                                        | 0.00                                        | 1800.00                 | 327.297                 | 5300           | 505.7          |
|                      | Southern Region Total      | 261,39,000.00                               | 327,86,165.86                               | 275,43,000.00           | 444,01,338.54           | 303,61,000.00  | 496,92,588.68  |
| GRAND Source: NABARD | TOTAL                      | 850,00,000.00                               | 915,50,991.50                               | 900,00,000.00           | 1065,75,567.01          | 1000,00,000.00 | 1168,50,283.71 |

|      | Agriculture Credit Outstanding data (Rs. In Lacs)   | Agriculture Credit Outstanding data (Rs. In Lacs)   | Annexure II          | Annexure II        |
|------|-----------------------------------------------------|-----------------------------------------------------|----------------------|--------------------|
| S.N. | State/UT                                            | 2015-16                                             | 2016-17 All Agencies | 2017-18            |
| S.N. |                                                     | Amount Outstanding                                  | Amount Outstanding   | Amount Outstanding |
| 1    | DELHI                                               | 1,61,697.40                                         | 1313761              | 1102723            |
| 2    | HARYANA                                             | 53,31,688.56                                        | 5647357              | 5848236            |
| 3    | HIMACHAL PRADESH                                    | 6,90,160.55                                         | 733661               | 783795             |
| 4    | JAMMU & KASHMIR                                     | 6,47,267.96                                         | 662286               | 729518             |
| 5    | PUNJAB                                              | 79,88,127.64                                        | 8376991              | 8552582            |
| 6    | RAJASTHAN                                           | 79,17,531.51                                        | 9143184              | 10024054           |
| 7    | CHANDIGARH UT                                       | 2,40,969.91                                         | 249366               | 236371             |
|      | Northern Region Total                               | 229,77,443.53                                       | 261,26,606.67        | 272,77,277.27      |
| 8    | ARUNACHAL PRADESH                                   | 17,528.12                                           | 26560                | 29038              |
| 9    | ASSAM                                               | 8,43,078.16                                         | 1086065              | 1205503            |
| 10   | MANIPUR                                             | 32,410.09                                           | 43204                | 44654              |
| 11   | MEGHALAYA                                           | 67,185.37                                           | 83092                | 86086              |
| 12   | MIZORAM                                             | 29,498.85                                           | 32571                | 50697              |
| 13   | NAGALAND                                            | 38,571.27                                           | 38736                | 47353              |
| 14   | SIKKIM                                              | 16,486.97                                           | 19300                | 22737              |
| 15   | TRIPURA                                             | 1,40,082.58                                         | 235664               | 335355             |
|      | North Eastern Region Total                          | 11,84,841.41                                        | 15,65,191.81         | 18,21,423.88       |
| 16   | A & N ISLAND                                        | 30,295.82                                           | 14798                | 14777              |
| 17   | BIHAR                                               | 31,37,017.09                                        | 3489403              | 3831707            |
| 18   | JHARKHAND                                           | 7,32,952.19                                         | 730658               | 817322             |
| 19   | ODISHA                                              | 23,80,299.26                                        | 2685323              | 2889584            |
| 20   | WEST BENGAL                                         | 40,89,135.73                                        | 3846261              | 4071754            |
|      | Eastern Region Total                                | 103,69,700.09                                       | 107,66,443.48        | 116,25,143.30      |
| 21   | CHHATTISGARH                                        | 11,35,537.55                                        | 1252887              | 1394163            |
| 22   | MADHYA PRADESH                                      | 66,59,013.28                                        | 7371363              | 8313028            |
| 23   | UTTARAKHAND                                         | 8,83,236.73                                         | 922091               | 1006141            |
| 24   | UTTAR PRADESH                                       | 124,80,062.22                                       | 20530100             | 20837028           |
|      | Central Region Total                                | 211,57,849.78                                       | 300,76,439.51        | 315,50,359.68      |
| 25   | GOA                                                 | 90,363.36                                           | 153599               | 171225             |
| 26   | GUJARAT                                             | 61,62,672.47                                        | 7057542              | 7704521            |
| 27   | MAHARASHTRA                                         | 163,44,663.81                                       | 16914931             | 16150337           |
| 28   | D & N HAVELI UT                                     | 6,104.37                                            | 5835                 | 5516               |
| 29   | DAMAN & DIU UT                                      | 2,009.92                                            | 2008                 | 4378               |
|      | Western Region Total                                | 226,05,813.93                                       | 241,33,913.56        | 240,35,977.07      |
| 30   | ANDHRA PRADESH                                      | 101,86,047.56                                       | 11132261             | 12646617           |
| 31   | TELANGANA                                           | 50,14,660.79                                        | 6225752              | 6040687            |
| 32   | KARNATAKA                                           | 127,37,867.30                                       | 12214101             | 12927529           |
| 33   | KERALA                                              | 60,60,363.93                                        | 6921243              | 7642105            |
| 34   | PUDUCHERRY                                          | 1,90,200.55                                         | 224221               | 243001             |
| 35   | TAMILNADU                                           | 134,25,780.28                                       | 14293142             | 17116907           |
| 36   | LAKSHADWEEP UT                                      | 3,876.05                                            | 633                  | 1772               |
|      | Southern Region Total                               | 476,18,796.46                                       | 510,11,352.96        | 566,18,616.64      |
|      | GRAND TOTAL Source: NABARD                          | 1259,14,445.20                                      | 1436,79,947.99       | 1529,28,797.84     |