Lok Sabha Question No. 252 (UNSTARRED), answered on 2019-06-24
Subject: Bank Loan to Farmers
Ministry: FINANCE
Asked by: Prataprao  Jadhav

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

Unstarred Question No. †252

To be answered on Monday, June 24, 2019/Ashadha 3, 1941 (Saka)

## Bank Loan to Farmers

†252. SHRI PRATAPRAO JADHAV:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken/ proposed to take any steps to provide bank loan facility to the farmers who  have  applied  for  bank  loans  in  the  country  particularly  to  all  those  farmers  of  Buldhana  Parliamentary Constituency of Maharashtra;
- (b) if so, the details thereof, State-wise including the said constituency; and
- (c) if not, the reasons therefor?

## Answer

The Finance Minister (Smt. Nirmala Sitharaman)

(a) to (c): Government fixes agriculture credit disbursement targets for the banking sector every year and banks have consistently surpassed these targets.

State-wise details of agriculture credit target fixed by the Government for the year 2019-20 is at Annexure I.

State  Level  Bankers'  Committee  (SLBC),  Maharashtra  has  reported  that  they  are  extending  credit  facilities, through various schemes & products for agriculture lending to all eligible farmers across the country including farmers of Buldhana Parliamentary Constituency of Maharashtra.

District wise details of crop loan disbursements as on 15.06.2019 for the State of Maharashtra as reported by SLBC, Maharashtra is given at Annexure II.

The Government of India/ Reserve Bank of India (RBI)/ NABARD have, inter alia, taken the following major initiatives for providing hassle free crop loans to farmers of the country :-

-  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%.
-  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. A sub-target of 8% is also prescribed for lending to small and marginal farmers including 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.
-  The  Government  has  introduced  the  Kisan  Credit  Card  (KCC)  Scheme,  which  enables  farmers  to purchase agricultural inputs such as seeds, fertilisers, pesticides, etc. and draw cash to satisfy their agricultural and consumption needs. The KCC Scheme has since been simplified and converted into 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.
-  Under  the  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.
-  To enhance coverage of small and marginal farmers in the formal credit system, RBI has decided to raise the limit for collateral-free agriculture loans from Rs. 1 lakh to Rs. 1.6 lakh.
-  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
-  To  bring  small,  marginal,  tenant  farmers,  oral  lessees,  etc.  into  the  fold  of  institutional  credit,  Joint Liability Groups (JLGs) have been promoted by banks.

| Annexure I to Lok Sabha USQ No. 252 for 24.06.2019 AGRICULTURE CREDIT TARGET 2019-20   | Annexure I to Lok Sabha USQ No. 252 for 24.06.2019 AGRICULTURE CREDIT TARGET 2019-20   | Annexure I to Lok Sabha USQ No. 252 for 24.06.2019 AGRICULTURE CREDIT TARGET 2019-20   |
|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| S. No.                                                                                 | State / UT                                                                             | Total                                                                                  |
| 1                                                                                      | NEW DELHI                                                                              | 1,070                                                                                  |
| 2                                                                                      | HARYANA                                                                                | 78,444                                                                                 |
| 3                                                                                      | HIMACHAL PRADESH                                                                       | 10,280                                                                                 |
| 4                                                                                      | JAMMU & KASHMIR                                                                        | 13,131                                                                                 |
| 5                                                                                      | PUNJAB                                                                                 | 91,939                                                                                 |
| 6                                                                                      | RAJASTHAN                                                                              | 108,002                                                                                |
| 7                                                                                      | CHANDIGARH( UT)                                                                        | 424                                                                                    |
| 8                                                                                      | ARUNACHAL PRADESH                                                                      | 662                                                                                    |
| 9                                                                                      | ASSAM                                                                                  | 11,346                                                                                 |
| 10                                                                                     | MANIPUR                                                                                | 933                                                                                    |
| 11                                                                                     | MEGHALAYA                                                                              | 987                                                                                    |
| 12                                                                                     | MIZORAM                                                                                | 520                                                                                    |
| 13                                                                                     | NAGALAND                                                                               | 623                                                                                    |
| 14                                                                                     | SIKKIM                                                                                 | 345                                                                                    |
| 15                                                                                     | TRIPURA                                                                                | 2,799                                                                                  |
| 16                                                                                     | A & N ISLAND                                                                           | 349                                                                                    |
| 17                                                                                     | BIHAR                                                                                  | 50,396                                                                                 |
| 18                                                                                     | JHARKHAND                                                                              | 9,026                                                                                  |
| 19                                                                                     | ORISSA                                                                                 | 38,849                                                                                 |
| 20                                                                                     | WEST BENGAL                                                                            | 74,960                                                                                 |
|                                                                                        | EASTERN                                                                                | 173,580                                                                                |
| 21                                                                                     | CHATTISGARH                                                                            | 19,693                                                                                 |
| 22                                                                                     | MADHYA PRADESH                                                                         | 89,714                                                                                 |
| 23                                                                                     | UTTARAKHAND                                                                            | 12,810                                                                                 |
| 24                                                                                     | UTTAR PRADESH                                                                          | 133,331                                                                                |
| 25                                                                                     | GOA                                                                                    | 1,674                                                                                  |
| 26                                                                                     | GUJARAT                                                                                | 74,867                                                                                 |
| 27                                                                                     | MAHARASHTRA                                                                            | 97,499                                                                                 |
| 28                                                                                     | D & N HAVELI UT                                                                        | 171                                                                                    |
| 29                                                                                     | DAMAN & DIU UT                                                                         | 73                                                                                     |
| 30                                                                                     | ANDHRA PRADESH                                                                         | 80,794                                                                                 |
| 31                                                                                     | TELANGANA                                                                              | 62,325                                                                                 |
| 32                                                                                     | KARNATAKA                                                                              | 80,141                                                                                 |
| 33                                                                                     | KERALA                                                                                 | 77,519                                                                                 |
| 34                                                                                     | PONDICHERRY                                                                            | 4,814                                                                                  |
| 35                                                                                     | TAMILNADU                                                                              | 119,335                                                                                |
| 36                                                                                     | LAKSHADWEEP UT                                                                         | 154                                                                                    |

Source: NABARD

## Annexure II to Lok Sabha USQ 252 for 24.06.2019 Crop Loan Disbursements in Maharashtra during 2019-20 (Position as of 15.06.2019)

No. Actual / Amount Rs. In Lakh

| Sr. No.   | District   |   Accounts |   Amount |
|-----------|------------|------------|----------|
| 1         | AHMEDNAGAR |      95358 |    78478 |
| 2         | AKOLA      |      29975 |    26447 |
| 3         | AMRAVATI   |      26140 |    24657 |
| 4         | AURANGABAD |      44605 |    23223 |
| 5         | BEED       |       7209 |     6904 |
| 6         | BHANDARA   |      42965 |    21160 |
| 7         | BULDHANA   |      13053 |    10271 |
| 8         | CHANDRAPUR |      52477 |    32048 |
| 9         | DHULE      |      16301 |    14107 |
| 10        | GADCHIROLI |      11877 |     4442 |
| 11        | GONDIA     |      22807 |     9836 |
| 12        | HINGOLI    |       9947 |     4522 |
| 13        | JALGAON    |      71671 |    41916 |
| 14        | JALNA      |      19724 |    11547 |
| 15        | KOLHAPUR   |      75962 |    71917 |
| 16        | LATUR      |     139534 |    62394 |
| 19        | NAGPUR     |      23279 |    27079 |
| 20        | NANDED     |      23496 |    13381 |
| 21        | NANDURBAR  |       6760 |     9956 |
| 22        | NASIK      |      17670 |    49816 |
| 23        | OSMANABAD  |      52217 |    22881 |
| 24        | PALGHAR    |       5089 |     3501 |
| 25        | PARBHANI   |      12273 |     7769 |
| 26        | PUNE       |     136117 |   120841 |
| 27        | RAIGAD     |      17982 |     8774 |
| 28        | RATNAGIRI  |      34656 |     4236 |
| 29        | SANGLI     |      62237 |    48847 |
| 30        | SATARA     |     146703 |    82020 |
| 31        | SINDHUDURG |       4021 |     2702 |
| 32        | SOLAPUR    |      37057 |    36786 |
| 33        | THANE      |       7219 |     3976 |
| 34        | WARDHA     |       7322 |     8239 |
| 35        | WASHIM     |      30522 |    24909 |
| 36        | YAVATMAL   |     100115 |    64752 |
|           | Total      |    1404340 |   984334 |

Source: SLBC, Maharashtra