Lok Sabha Question No. 171 (UNSTARRED), answered on 2021-02-02
Subject: Loans disbursed under KCC
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Girish Bhalchandra Bapat, Shrirang Appa Barne, Krupal Balaji Tumane, Sudheer Gupta, Sanjay Sadashivrao Mandlik, Chandra Sekhar Sahu, Bidyut Baran Mahato

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

## LOK  SABHA UNSTARRED QUESTION NO.171

TO BE ANSWERED ON THE  2 ND  FEBRUARY, 2021

## LOANS DISBURSED UNDER KCC

## 171.   SHRI GIRISH BHALCHANDRA BAPAT:

SHRI SHRIRANG APPA BARNE:

SHRI KRUPAL BALAJI TUMANE:

SHRI SUDHEER GUPTA:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI CHANDRA SEKHAR SAHU:

SHRI BIDYUT BARAN MAHATO:

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

- (a) the details of the loans disbursed under Kisan Credit Card (KCC) during each of the last three years in the country including Maharashtra, State-wise;
- (b) whether the Government proposes to increase the maximum limit of loan under KCC scheme in view of increasing expenditure of farmers;
- (c) if so, the details thereof and if not, the reasons therefor indicating the maximum limit of loans presently;
- (d) the total number of farmers covered under the KCC scheme in Maharashtra during the said period;
- (e) the  number of applications pending at present along with the reasons for the same and the steps taken for speedy disposal of pending applications;
- (f) whether  the  amount  of  loan  has  been  increased  for  KCC  holders  in  view  of  the increase in the expenses of the farmers, if so, the details thereof;
- (g) whether the farmers can pay only annual interest incurred on loan taken through their KCC in the banks, if not, whether the Government proposes to make such an arrangement; and
- (h) 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): The  State-wise  Short  Term  Crop  Loans  including  loans  disbursed  through  Kisan Credit Card (KCC) during the last three years including Maharashtra, are annexed.

(b) & (c): As per the KCC master circular of RBI, the credit limit under KCC is decided as per following method:

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 Personal Accident Insurance Scheme (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, i.e., five years. Hence, the maximum limit for KCC loan is not fixed.

(d): The total number of farmers covered under the KCC scheme in Maharashtra during the last three years are as under:

| Year    |   Number of farmers in Maharashtra covered under the KCC (number in actual) |
|---------|-----------------------------------------------------------------------------|
| 2017-18 |                                                                     2304683 |
| 2018-19 |                                                                     2257706 |
| 2019-20 |                                                                     2502716 |

(e): A  total  of  2,27,593  of  KCC  applications  are  pending  with  banks.  Non  availability  of land  documents/  Mismatch  of  documents  are  the  main  reasons  for  pendency  of  KCC applications.

## Steps taken for speedy  disposal of pending KCC applications

1.  Detailed instructions issued to State Governments to provide verified land documents to concerned bank branches for expediting the issue of KCC.
2. All  kinds  of  service  charges  like  processing  fee,  inspection,  ledger  folio  charges  for loans upto Rs.3.00 lakh have been waived off.
3.  A  time  line  of  14  days  has  been  fixed  to  issue  KCC  after  receipt  of  complete application.

(f): Information is at reply of (b) & (c) above.

(g) & (h): 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  along  with  the  due  interest.  As  of now, there is no such proposal.

The  Government  of  India  has  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  (PMKISAN), 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.

Annex Short Term AgriLoan including through Kisan Credit Card (KCC) disbursement during 2017-18, 2018-19 and 2019-20

| r.No .   | States and Region   | Short Term AgriLoan 2017-   | Shor t Term AgriLoan 2018   | Short Term AgriLoan 2019-20   |
|----------|---------------------|-----------------------------|-----------------------------|-------------------------------|
|          |                     | Amou nt (Rs. in Lakh)       | Amo unt (Rs. in Lakh)       | Amount (Rs. in Lakh)          |
|          | DELHI               | 653,9 26.31                 | 188, 082                    | 75458.71                      |
|          | HARYANA             | 3,883, 484.44               | 4,11 6,242                  | 4325010.1 0                   |
|          | HIMACHAL PRADESH    | 1,090, 564.56               | 489, 996                    | 566620.02                     |
|          | JAMMU and KASHMIR   | 924,8 82.27                 | 1,05 3,258                  | 1092927.8 2                   |
|          | PUNJAB              | 5,297, 747.92               | 5,40 2,287                  | 5744444.4 2                   |
|          | RAJASTHAN           | 6,358, 254.75               | 6,15 7,042                  | 6710406.7 9                   |
|          | CHANDIGARH UT       | 129,3 24.76                 | 40,8 44 17,4                | 18455.21                      |
|          | Northern Region     | 18,33 8,185.01              | 47,751                      | 18533323. 07                  |
|          | ARUNACHAL PRADESH   | 2,673. 86                   | 2,45 0                      | 2733.72                       |
| 0        | MANIPUR             | 92.24 3,676. 79             | 700 3,80 3                  | 3306.17                       |
| 1        | MEGHALAYA           | 28,66 2.96                  | 13,7 15                     | 14852.24                      |
| 2        | MIZORAM             | 2,324. 91                   | 1,71 7                      | 1276.75                       |
| 3        | NAGALAND            | 8,263.                      | 8,32                        | 10475.26                      |
|          | SIKKIM              | 27 6,574.                   | 7 5,91                      | 20251.59                      |
| 4        | TRIPURA             | 83 70,47                    | 0 41,2                      | 7063.13                       |
| 5        | North Eastern       | 4.85 273,3 43.71            | 74 182,                     | 213511.73                     |
|          | Region              | 4,205.                      | 895 3,11                    | 2623.59                       |
| 6        | A and N ISLAND      | 19                          | 9                           |                               |
| 7        | BIHAR               | 1,443, 514.10               | 1,78 8,625                  | 1716342.3 6                   |

| 9   |                   | 001.97         | 3,809       | 9            |
|-----|-------------------|----------------|-------------|--------------|
| 0   | WEST BENGAL       | 1,484, 358.00  | 1,22 1,784  | 1362037.1 1  |
|     | Eastern Region    | 4,707, 119.10  | 4,92 3,065  | 5055949.1 5  |
| 1   | CHHATTISGARH      | 1,083, 965.94  | 642, 086    | 983197.18    |
| 2   | MADHYA PRADESH    | 4,591, 768.91  | 4,41 4,701  | 4187075.2 9  |
| 3   | UTTARAKHAND       | 469,2 67.66    | 530, 000    | 459799.27    |
| 4   | UTTAR PRADESH     | 6,151, 245.23  | 6,04 5,197  | 7436722.5 9  |
|     | Central Region    | 12,29 6,247.74 | 11,6 31,984 | 13066794. 33 |
| 5   | GOA               | 33,91 7.76     | 34,0 33     | 29004.35     |
| 6   | GUJARAT           | 3,965, 037.59  | 3,98 5,046  | 4396483.9 4  |
| 7   | MAHARASHTRA       | 2,737, 137.32  | 3,36 6,558  | 3154705.6 9  |
| 8   | D and N HAVELI UT | 1,304. 20      | 1,10 4      | 1146.43      |
|     | DAMAN and DIU UT  | 1,215. 66      | 986         | 1154.32      |
| 9   | Western Region    | 6,738, 612.53  | 7,38 7,727  | 7582494.7 3  |
| 0   | ANDHRA PRADESH    | 7,869, 068.09  | 8,29 1,211  | 9338034.5 7  |
| 1   | TELANGANA         | 4,496, 082.00  | 2,73 7,804  | 3293032.1 0  |
| 2   | KARNATAKA         | 4,414, 577.49  | 3,79 7,494  | 4447674.5 5  |
| 3   | KERALA            | 5,475, 924.52  | 6,00 2,335  | 6222451.0 2  |
| 4   | PUDUCHERRY        | 184,5 96.92    | 218, 909    | 240180.51    |
| 5   | TAMILNADU         | 10,52 7,616.13 | 12,5 99,610 | 14521319. 96 |
|     | LAKSHADWEEP UT    | 50.78          | 140         | 154.92       |
| 6   | Southern Region   | 32,96 7,915.93 | 33,6 47,501 | 38062847. 63 |
|     | Grand Total:      | 75,32 1,424.02 | 75,2 20,924 | 82514920.    |
|     |                   |                |             | 64           |

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