Lok Sabha Question No. 2223 (UNSTARRED), answered on 2021-08-02
Subject: Agricultural Loan
Ministry: FINANCE
Asked by: Uday Pratap Singh

## Government of India Ministry of Finance

## Department of Financial Services

## LOK SABHA

Answered on

Unstarred Question No. 2223+ Monday, August 02, 2021/Sravana 11,1943 (Saka)

## AGRICULTURAL LOAN Question

## {2223 . SHRI UDAY PRATAP SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) whether the farmers are the challenges regarding agriculture loan due to Covid-19 pandemic in the country; facing
- (6) if the details thereof; and SO,
- (c) the efforts made/being made by the Government for the remedy of the problems regarding agriculture loan faced by the farmers in the country? being

## Answer

## THE MINISTER OF STATE IN THE MINISTR Y OF FINANCE (DR BHAGWAT KARAD)

- (a) to (c): Following major initiatives have been taken by the Government/Reserve Bank of India (RBI) to mitigate the hardship being faced by farmers due to Covid-19:
- The moratorium for the total period of six months upto August; 2020, was permitted in respect of all term loans (including agricultural term loans, retail and crop loans): This was aimed at providing temporary reprieve to borrowers affected by the pandemic, while attempting to preserve the resilience of In order to ensure that farmers do not pay higher interest the moratorium period, the benefit of 2% Interest Subvention and 3% Prompt Repayment Incentive was also extended to them for the moratorium period up to 3lst August, 2020 or date of repayment; whichever is earlier: As advised by RBI, the moratorium has not been extended beyond August 2020 into account the larger implications on the banking sector; credit culture and financial stability. 31st during 31, taking
- Further; RBI $ extant directions on relief measures to be provided by respective lending institutions inter alia, include, restructuring/rescheduling of existing crop loans and term loans; extending fresh loans, relaxed security and margin norms, moratorium; etc. These directions have been so designed that the moment calamity is declared  by the concerned State   Governments/District Authorities are automatically set in motion without any intervention, thus saving precious time. The benchmark for initiating relief measures by banks has also been reduced to 33% crop loss in line with the National Disaster Management Framework: they
- In respect of loans to allied activities viz , fishery, animal husbandry, poultry, bee-keeping and sericulture, RBI has also issued a clarification that these loans can be taken up for resolution under the Resolution Framework for Covid-19 related Stress issued on 6th August 2020 which; inter provides for a moratorium upto two years dairy, alia,
- To meet the credit needs for post-harvest and kharif sowing requirements of farmers including small and marginal farmers, a front-loaded Special Liquidity Facility (SLF) of Rs. 55,000 crore under SLF-I and SLF-II has been extended by NABARD during COVID-19 pandemic for Regional Rural Banks, Cooperative Banks and Non Banking Financial Company (NBFCs)-Micro Finance Institutions (mFIs). This additional special liquidity facility to the rural financial institutions at concessional rate of interest will ensure enhanced credit flow to the agriculture and the allied sector:

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