Lok Sabha Question No. 1460 (UNSTARRED), answered on 2021-12-07
Subject: Loans to KCC Holders
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: D. M. Kathir Anand, Dr. T. Sumathy (a) Thamizhachi Thangapandian

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

## LOK SABHA UNSTARRED QUESTION No. 1460

TO BE ANSWERED ON 7 TH  DECEMBER, 2021

## LOANS TO KCC HOLDERS

1460.  SHRI D. M. KATHIR ANAND; DR T. SUMANTHY (A) THAMIZHACHI THANGAPANDIAN:

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

- (a) the details of the loans given to the Kisan Credit Card (KCC) holders in Tamil Nadu during the last five years;
- (b) whether the quantum of allotment of loans increased for KCC holders to meet the increasing expenses incurred for farming activities from sowing the seeds to harvest;
- (c) if so, the details thereof and if not, the reasons therefor;
- (d) whether the Government has taken serious note of farmers being harassed by the public Sector Bank officials as well as private Banks and money lenders for not being able to pay their interests and loan capital; and
- (e) If so, the steps taken by the Government to solve this grave problem?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE कृ िष एवं कसान क  याण मंी (SHRI NARENDRA SINGH TOMAR)

- (a): The  detail  of  loans  given  to  the  Kisan  Credit  Card  (KCC)  holders  in  Tamil  Nadu during the last five years is as under:
- (b) & (c): As per the KCC Master Circular of RBI, the credit limit under KCC is decided as per following method:

|   S.No. | Financial Year   | Loan Amount (in Crore)   |
|---------|------------------|--------------------------|
|       1 | 2016-17          | 15,442.54                |
|       2 | 2017-18          | 17,012.91                |
|       3 | 2018-19          | 18,658.46                |
|       4 | 2019-20          | 19,657.64                |
|       5 | 2020-21          | 19,474.90                |

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  Accidental  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) & (e): The Government of India implements the Interest Subvention Scheme with a view to provide short term Agri-loans to the farmers at concessional rate of interest. Under the  scheme, short term crop loan upto Rs. 3.00 lakh is available to farmers engaged in Agriculture  and  other  allied  activities  at  benchmark  rate  of  9%.  Government  of  India provides 2% Interest Subvention on the benchmark rate. Additional 3% subvention is also given to the farmers for prompt and timely repayment of loans; thus the effective rate of interest  comes  down  to  4%  per  annum. With  the  objective  of  providing  easy  access  to credit to the farmers, the effective rate of interest has thus been kept low to facilitate timely repayment of KCC loan by the farmers.

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