Lok Sabha Question No. 232 (UNSTARRED), answered on 2020-09-15
Subject: Loans under KCC
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sumedhanand Saraswati

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 232

TO BE ANSWERED ON THE 15 TH  SEPTEMBER, 2020

## LOANS UNDER KCC

## 232.     SHRI SUMEDHANAND SARASWATI:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the details of the loans given to the Kisan Credit Card (KCC) holders in Rajasthan during each of the last three years;
- (b) whether  the  amount  of  loan  has  been  increased  for  KCC  holders  in  view  of  the increase in the expenses of the farmers;
- (c) if so, the details thereof;
- (d) whether the farmers can pay only annual interest incurred on loan taken through their KCC in the banks;
- (e) if not, whether the Government proposes to make such an arrangement; and
- (f) whether the Government is of the view that by doing so, the farmers are likely to repay the loan on time and also be free from the harassment of the moneylenders?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a):    Details of the loans given by scheduled commercial banks, RRBs and Cooperatives to the Kisan Credit Card (KCC) holders in Rajasthan during each of the last three years are as under:

| Years   |   Outstanding Loan (Rs. in crores) |
|---------|------------------------------------|
| 2017-18 |                            55772.8 |
| 2018-19 |                            59412.8 |
| 2019-20 |                            63062.6 |

(b) & (c):    The amount of credit limit provided is as per Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest/household/ consumption requirements + 20% of limit towards repairs and  maintenance  expenses  of  farm  assets  +  crop  insurance  and/or  accident  insurance including PAIS, health insurance & asset insurance.

For second & subsequent years the calculation is as follows:-    First year limit for crop cultivation purpose arrived at as above plus 10% of the limit towards cost escalation / increase in scale of finance for every successive  year (2nd, 3rd, 4th and 5th year) and estimated term loan component for the tenure of Kisan Credit Card (KCC), i.e., five years.

(d):        As  per  the  RBI's Master  Circular on KCC Scheme, there is no such provision for payment  of  only  interest  incurred  on  loan  taken.  As  per  the  provisions  of  the  Interest Subvention Scheme(ISS), KCC agri-loan(short term) upto Rs.3 lakh taken by the farmers is  eligible  for  2%  Interest  Subvention  to  banks  and  additional  3%  directly  to  farmers  on prompt  repayment  (PRI)  of  the  loan.  Thus  farmers  get  the  short  term  agri  loans  at  an effective interest rate of 4% on timely repayment. Hence, the farmers become eligible for total  5%  of  Interest  Subsidy  only  on  repayment  of  principal  amount  alongwith  the  due interest.

(e) & (f):    There is no such proposal. The Government of India, have inter-alia, taken the following major initiatives to reduce the debt burden of farmers and thus freeing them from the clutches of money lenders. These schemes/initiatives include KCC Saturation drive to ensure  concessional  institutional  credit  to  all  eligible  farmers  in  the  country,  Pradhan Mantri Kisan SAmman Nidhi (PM-KISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), formation of Joint Liabilities Groups (JLG's), Rashtriya Krishi Vikas Yojana (RKVY),National  Food  Security  Mission  (NFSM),  National  Agriculture  Market  (e-NAM), National Mission For Sustainable Agriculture (NMSA), Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) etc.

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