Lok Sabha Question No. 1132 (UNSTARRED), answered on 2021-02-08
Subject: Loan to Farmers
Ministry: FINANCE
Asked by: Pankaj Chowdhary

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

## LOK SABHA

## Unstarred Question No. t1132 Answered on Monday, February 8, 2021/Magha 19,1942 (Saka) LOAN TO FARMERS

## Question

## +1132. SHRI PANKAJ CHAUDHARY:

Will the Minister of FINANCE be pleased to state:

- (a) the details of scheme implemented by the Government to provide loans to farmers for carrying out various agricultural activities across the country; being
- (b) the total amount of loans provided to Farmers by various banks under this scheme and the details of outstanding amount due on them, bank-wise;
- (c) whether the Government proposes to provide loan to farmers on minimum interest rate for agriculture and agricultural equipment;
- (d) if the details thereof and if not; the reasons therefor; and SO,
- (e) the steps taken/being taken by the Government to facilitate easy disbursal of loans to Farmers?

## Answer

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

(a) to (e): The Kisan Credit Card (KCC) scheme is implemented by the Government for issue of KCC to farmers. The scheme aims at providing adequate and timely credit support from the banking system under a single   window with  flexible and simplified procedure to the farmers to meet their short term credit requirements for cultivation of crops, investment credit requirement for agriculture and allied activities other related needs. being and details of  total agricultural balance   outstanding in  respect of   Scheduled Commercial Banks aS on 31.03.2020 are provided in the Annexure to this reply.

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 the regulatory guidelines on interest rate on advances contained in RBl s Master Direction dated 03.03.2016. Interest rates on loans could vary from time to time and are based on credit profile of the borrowers

Government of India implements an interest subvention scheme under which short term crop loans up to Rs. 3.00 lakh are provided to farmers at a reduced interest rate of 7% p.a. Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.

The Government/RBI has taken the following initiatives to meet the financial requirement of farmers:

- The Priority Sector Lending (PSL) directions of RBL mandate all Domestic Scheduled Commercial Banks to earmark 18% of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent amount of Off-Balance Sheet Exposure (CEOBE); whichever is higher, as on the corresponding date of the previous year; for lending to Agriculture including loans to farmers. Further; & sub-target of 10% for small and marginal farmers has also been fixed: The target for lending to small and marginal  farmers shall be revised upwards from 10% to 12% in phased manner from FY 2021-22 to 2023-24.
- 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 the land holding and crops including post harvest warehouse storage related credit needs and other farm expenses, consumption needs, plus small term loan investments without relating it to the value of land. grown on etc ,
- 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 benefits of KCC along with interest subvention have been  extended to Animal Husbandry and Fisheries farmers.
- 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 selfdeclaration from the borrower is required.
- To small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional credit; Joint Liability Groups (JLGs) have been promoted by banks. bring

## Annexure as referred to in part (b) of the reply to Rajya Sabha Unstarred Question No. 1132 for 08.02.2021 Total Agricultural Balance outstanding for Scheduled Commercial Banks as on March 31,

## 2020

| Sr.No   | Bank Name                                       | Balance Outstanding (in Rs. thousand)   |
|---------|-------------------------------------------------|-----------------------------------------|
|         | AB BANK LIMITED                                 | 0                                       |
| 2       | ABU DHABI COMMERCIAL BANK PJSC                  | 0                                       |
| 3       | AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED | 0                                       |
| 4       | BANK OF AMERICA NATIONAL ASSOCIATION            | 0                                       |
| 5       | BANK OF BAHRAIN & KUWAIT BS.C.                  | 0                                       |
| 6       | BANK OF CEYLON                                  | 0                                       |
| 7       | BANK OF NOVA SCOTIA                             |                                         |
| 8       | BARCLAYS BANK PLC                               | 0                                       |
| 9       | BNP PARIBAS                                     | 675140                                  |
| 10      | CITIBANK NA                                     | 120518397                               |
| 11      | COOPERATIEVE RABOBANK UA_                       | 1270054                                 |
| 12      | CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK   | 556502                                  |
| 13      | CREDIT SUISSE AG                                | 0                                       |
| 14      | CTBC BANK CO_LTD                                | 230000                                  |
| 15      | DEUTSCHE BANK AG                                | 401431                                  |
| 16      | DOHA BANK QSC                                   | 0                                       |
| 17      | EMIRATES NBD BANK (PJS.C)                       | 0                                       |
| 18      | FIRST ABU DHABI BANK PJSC                       | 0                                       |
| 19      | FIRSTRAND BANK LTD                              | 0                                       |
| 20      | HONGKONG AND SHANGHAI BANKING CORPNLTD.         | 211826894.8                             |
| 21      |                                                 |                                         |
| 22      | INDUSTRIAL BANK OF KOREA                        |                                         |
| 23      | JPMORGAN CHASE BANK NATIONAL ASSOCIATION        |                                         |
| 24      | KEB HANA BANK                                   |                                         |
| 25      | KOOKMIN BANK                                    | 0                                       |
| 26      | KRUNG THAI BANK PUBLIC COMPANY LIMITED          | 2196                                    |
| 27      | MASHREQ BANK PSC                                | 0                                       |
| 28      | MIZUHO BANK LTD                                 |                                         |
| 29      | PT BANK MAYBANK INDONESIA TBK                   |                                         |
| 30      | QATAR NATIONAL BANK SAQ                         | 0                                       |
| 31      | SBERBANK                                        | 61682                                   |
| 32      | SHINHAN BANK                                    | 122476                                  |
| 33      | SOCIETE GENERALE                                | 0                                       |
| 34      | SONALI BANK                                     | 0                                       |
| 35      | STANDARD CHARTERED BANK                         | 188381206                               |
| 36      | SUMITOMO MITSUI BANKING CORPORATION             | 0                                       |
|         | THE BANK OF TOKYO-MITSUBISHI UFJ LTD            | 32536                                   |
| 38      | THE ROYAL BANK OF SCOTLAND PLC                  | 2099946                                 |
| 39      | UNITED OVERSEAS BANK LTD                        | 0                                       |
| 40      | WESTPAC BANKING CORPORATION                     |                                         |
| 41      | WOORI BANK                                      |                                         |

|    | FOREIGN BANKS                |      526178460.8 |
|----|------------------------------|------------------|
| 1  | ALLAHABAD BANK               |      2.48586e+08 |
| 2  | ANDHRA BANK                  |      3.12458e+08 |
| 3  | BANK OF BARODA               |      1.00952e+09 |
| 4  | BANK OF INDIA                |      5.64862e+08 |
| 5  | BANK OF MAHARASHTRA          |      1.69988e+08 |
| 6  | CANARA BANK                  |      7.56475e+08 |
| 7  | CENTRAL BANK OF INDIA        |      3.08147e+08 |
| 8  | CORPORATION BANK             |      2.40899e+08 |
| 9  | INDIAN BANK                  |      3.13576e+08 |
| 10 | INDIAN OVERSEAS BANK         |      3.15498e+08 |
| 11 | ORIENTAL BANK OF COMMERCE    |      2.06535e+08 |
| 12 |                              |      1.11682e+08 |
| 13 | PUNJAB NATIONAL BANK         |      9.57828e+08 |
| 14 | SYNDICATE BANK               |      3.53945e+08 |
| 15 | UCO BANK                     |      2.36514e+08 |
| 16 | UNION BANK OF INDIA          |      5.47068e+08 |
| 17 | UNITED BANK OF INDIA         |      1.35651e+08 |
|    | NATIONALISED BANKS           |      6.78923e+09 |
|    | AXIS BANK LIMITED            |      9.0763e+08  |
| 2  | BANDHAN BANK LIMITED         |      2.07948e+08 |
| 3  | CATHOLIC SYRIAN BANK LTD     |      1.71786e+07 |
| 4  | CITY UNION BANK LIMITED      |      6.8767e+07  |
| 5  | DBS BANK LTD_                |      7.79572e+06 |
| 6  | DCB BANK LIMITED             |      3.63914e+07 |
| 7  | FEDERAL BANK LTD             |      1.87769e+08 |
| 8  | HDFC BANK LTD_               |      1.46517e+09 |
| 9  | ICICI BANK LIMITED           |      9.90836e+08 |
| 10 | IDBI BANK LIMITED            |      3.10675e+08 |
| 11 | IDFC BANK LIMITED            |      1.54481e+08 |
| 12 | NNDUSIND BANK LTD            |      2.35788e+08 |
| 13 | JAMMU & KASHMIR BANK LTD     |      1.036e+08   |
| 14 | KARNATAKA BANK LTD           |      8.65502e+07 |
| 15 | KARUR VYSYA BANK LTD         |      9.97456e+07 |
| 16 | KOTAK MAHINDRA BANK LTD_     |      3.54464e+08 |
| 17 | LAKSHMI VILAS BANK LTD       |      4.99001e+07 |
| 18 | NAINITAL BANK LTD            |      8.64269e+06 |
| 19 | RBL BANK LIMITED             |      8.08274e+07 |
| 20 | SBM BANK (MAURITIUS)LTD      | 995833           |
| 21 | SOUTH INDIAN BANK LTD        |      1.22271e+08 |
| 22 | TAMILNAD MERCANTILE BANK LTD |      6.72469e+07 |
| 23 | THE DHANALAKSHMI BANK LTD    |      1.52317e+07 |
| 24 | YES BANK LTD.                |      2.51378e+08 |

|             | PRIVATE SECTOR BANKS                 | 5831280313   |
|-------------|--------------------------------------|--------------|
|             | STATE BANK OF INDIA                  | 3301601246   |
|             | SBI AND ITS ASSOCIATES               | 3301601246   |
|             | AU SMALL FINANCE BANK LIMITED        | 18097085     |
| 2           | CAPITAL SMALL FINANCE BANK LIMITED   | 8944444      |
| 3           | EQUITAS SMALL FINANCE BANK LIMITED   | 9485387      |
| 4           | ESAF SMALL FINANCE BANK LIMITED      | 33528240     |
| 5           | FINCARE SMALL FINANCE BANK LIMITED   | 27949822     |
| 6           | JANA SMALL FINANCE BANK LIMITED      | 25672838     |
| 7           | NORTHEAST SMALL FINANCE BANK LIMITED | 5227998      |
| 8           | SURYODAYA SMALL FNNANCE BANK LTD_    | 1454935.7    |
| 9           | UJJIVAN SMALL FINANCE BANK LIMITED   | 39650627.68  |
| 10          | UTKARSH SMALL FINANCE BANK LIMITED   | 7520830.08   |
|             | SMALL FINANCE BANK                   | 177532207.5  |
| Source: RBI | Source: RBI                          | Source: RBI  |