Lok Sabha Question No. 3462 (UNSTARRED), answered on 2020-03-16
Subject: Loan to BPL People
Ministry: FINANCE
Asked by: Santosh Pandey

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3462

ANSWERED ON March 16, 2020 /Phalguna 26, 1941 (SAKA)

## Loan to BPL People

3462. SHRI SANTOSH PANDEY

Will the Minister of FINANCE be pleased to state:

- a) the criteria adopted by the public and private sectors banks to provide loans to people living Below the Poverty Line (BPL) in the country; and
- b) the details of the amount and types of loans provided to such people under the various welfare schemes during each of the last three years and the current year, bank and State-wise including Chhattisgarh State?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (b): In terms of Reserve Bank of India (RBI) guidelines on Priority Sector Lending (PSL), a target of 40% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on the corresponding date of the preceding year, has been earmarked for lending to the priority sector by domestic scheduled commercial banks and foreign banks with 20 branches and above. Within this, a sub-target of 10% of ANBC or Credit Equivalent amount of OBE, whichever is higher, has been prescribed for lending to Weaker sections.

The philosophy of the priority sector lending is to enhance credit flow to the vulnerable sections of the society which may not get timely and adequate credit in absence of a special dispensation. Basically these are loans to Small and Marginal Farmers, Micro, Small and Medium Enterprises, poor people for housing, students for education and weaker sections, amongst others.

As per the said guidelines on PSL, the loans sanctioned by banks for housing projects, exclusively for the purpose of construction of houses for Economically Weaker Sections (EWS) and Low-Income Groups (LIG), the total cost of which does not  exceed  ₹10  lakh  per  dwelling  unit,    will  be  considered  as  eligible  for  Priority Sector. For the purpose of identifying the Economically Weaker Sections and LowIncome Groups, the family income limit has been revised to ₹3 lakh per annum for EWS and ₹6 lakh per annum for LIG, in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana.

Bank-wise, State-wise loan disbursed to Priority Sector and Weaker section is given in Annexure I, II, III and IV respectively.

Government is also implementing various loan/subsidy schemes for the benefit of poor people in the country. Some of the major scheme are as follows:

## I. Pradhan Mantri Awas Yojana - Urban (PMAY-U):

In pursuance of the Government's vision of 'Housing for All' by 2022, Ministry of Housing and Urban Affairs is implementing Pradhan Mantri Awas Yojana (Urban) [PMAY(U)] since 25.06.2015 to provide Central Assistance to States/Union Territories(UTs) for providing all weather pucca houses to all eligible urban households, especially Economically Weaker Section (EWS) families/beneficiaries.

State/UT wise details of total houses constructed along with houses constructed during each of the last three years under the PMAY (U) are at Annexure V .

Under the credit linked subsidy scheme, which is an component of PMAY-U, an interest subsidy of 6.5% is provided for EWS/LIG on housing loan up to Rs. 6 lakh, over a tenure of 20 years.

## II. Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY-NRLM):

The scheme aims at promoting poverty reduction through building strong institutions of the poor, particularly women and enabling these institutions to access a range of financial services and livelihood services. DAY-NRLM has a provision for interest subvention, to cover the difference between the Lending Rate of the banks and 7% per annum, on all credit from the banks/ financial institutions availed by women Self Help Groups (SHGs), for a maximum of Rs. 3 Lakh per SHG. Further there is also a provision of additional interest subvention of 3% for all prompt payee SHG accounts in selected 250 districts.

Bank-wise and State-wise details of NRLM are given at Annexure-VI & VII respectively.

- III. (a) Central Sector Interest Subsidy Scheme (CSIS): Scheme is administered by the Ministry of Human Resource Development. Under the scheme full interest subsidy is available for the students belonging to economically weaker sections, for studies in India, for educational loans disbursed on or after 1 st April, 2009 during the period of moratorium

(b) Padho Pardesh Scheme (effective from the year 2013-14) is administered by the Ministry of Minority Affairs. The objective of the scheme is to award interest subsidy to meritorious students belonging to Economically Weaker Sections of notified minority communities for overseas studies.

The total amount of subsidy disbursed/ settled in the above schemes, during the last three years, as reported by Canara Bank which is the nodal bank for implementation of this scheme is as under:

## Central Sector Interest Subsidy Scheme

(Rs. In crore)

| Financial Year   |   Amount of subsidy disbursed |
|------------------|-------------------------------|
| 2016-17          |                       1543.51 |
| 2017-18          |                       1587.83 |
| 2018-19          |                       1560.55 |

Padho Pardesh Scheme

(Rs. In crore)

| Financial Year   |   Amount of subsidy disbursed |
|------------------|-------------------------------|
| 2016-17          |                          4    |
| 2017-18          |                          8    |
| 2018-19          |                         45.83 |

**********

## Annexure referred to in reply of Lok Sabha UnStarred Question No.3462 to be answered on 16th March, 2020 regarding Loan to BPL People

## Bank-Wise total amount of loans distrubursed under Priority Sector during the last three years

(No. of Accounts in actual & Amount in Rupees Crore)

|        |                        | 2016-17                     | 2016-17                     | 2017-18                     | 2017-18                     | 2018-19                     | 2018-19                     |
|--------|------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| Sr. No | Bank Name              | Disbursment during the year | Disbursment during the year | Disbursment during the year | Disbursment during the year | Disbursment during the year | Disbursment during the year |
|        |                        | No. of A/cs                 | Amount disbursed            | No. of A/cs                 | Amount disbursed            | No. of A/cs                 | Amount disbursed            |
| 1      | SBI AND ITS ASSOCIATES | 12536492                    | 325540                      | 12380719                    | 273174                      | 12247146                    | 321057                      |
| 2      | ALLAHABAD BANK         | 962004                      | 18612                       | 1291845                     | 41922                       | 1251781                     | 37589                       |
| 3      | ANDHRA BANK            | 2369110                     | 49170                       | 3126291                     | 66121                       | 2647052                     | 56176                       |
| 4      | BANK OF BARODA         | 1016728                     | 24422                       | 1601985                     | 35141                       | 1791579                     | 44922                       |
| 5      | BANK OF INDIA          | 2131077                     | 61732                       | 2183364                     | 85066                       | 2345793                     | 84006                       |
| 6      | BANK OF MAHARASHTRA    | 560193                      | 18058                       | 439574                      | 508                         | 483542                      | 527                         |
| 7      | CANARA BANK            | 4890                        | 47                          | 5630646                     | 73652                       | 7864382                     | 98159                       |
| 8      | CENTRAL BANK OF INDIA  | 4974636                     | 73812                       | 1931336                     | 41576                       | 2055344                     | 45130                       |
| 9      | CORPORATION BANK       | 2012504                     | 45666                       | 1124772                     | 39393                       | 1038543                     | 32341                       |
| 10     | DENA BANK              | 1620994                     | 51171                       | 341747                      | 18857                       | 237041                      | 10065                       |
| 11     | IDBI BANK LIMITED      | 315367                      | 21098                       | 966971                      | 39429                       | 1145333                     | 49242                       |
| 12     | INDIAN BANK            | 799980                      | 28333                       | 4346776                     | 41480                       | 4985942                     | 48266                       |
| 13     | INDIAN OVERSEAS BANK   | 3391577                     | 29954                       | 2344257                     | 36965                       | 2583289                     | 38478                       |
| 14     | ORIENTAL BANK OF       | 1974417                     | 37527                       | 740126                      | 16892                       | 416995                      | 20603                       |

|            | COMMERCE             |            |            |            |            |            |            |
|------------|----------------------|------------|------------|------------|------------|------------|------------|
| 15         | PUNJAB AND SIND BANK | 586579     | 25240      | 82054      | 5860       | 60670      | 5548       |
| 16         | PUNJAB NATIONAL BANK | 77003      | 4703       | 2627843    | 128066     | 2199785    | 124483     |
| 17         | SYNDICATE BANK       | 2414141    | 104243     | 1963719    | 42318      | 1823046    | 39529      |
| 18         | UCO BANK             | 1638560    | 38214      | 1000138    | 41115      | 1204047    | 28424      |
| 19         | UNION BANK OF INDIA  | 456847     | 22007      | 1161121    | 34549      | 1076267    | 54810      |
| 20         | UNITED BANK OF INDIA | 1246635    | 54045      | 354443     | 10495      | 293260     | 8187       |
| 21         | VIJAYA BANK          | 448052     | 13275      | 1077493    | 21693      | 967107     | 21152      |
|            | Sum:                 | 41537786   | 1046870    | 46717220   | 1094272    | 48717944   | 1168693    |
| Source:RBI | Source:RBI           | Source:RBI | Source:RBI | Source:RBI | Source:RBI | Source:RBI | Source:RBI |