Lok Sabha Question No. 110 (UNSTARRED), answered on 2021-11-29
Subject: Household Indebtedness
Ministry: FINANCE
Asked by: Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO 110

TO BE ANSWERED ON 29.11.2021

## HOUSEHOLD INDEBTEDNESS

## 110. SHRI RAVNEET SINGH BITTU:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government is aware that as per a recent analysis, there has been a sharp rise in indebtedness among rural as well as urban households in the country;

(b) if so, the details thereof during the last three years, year-wise and State/UT-wise along with reasons therefor;

(c) whether the Government is taking any measures to reduce the rising debt in rural as well as urban households in the country;

(d) if so, the details thereof; and

(e) if not, reasons therefor ?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b) Status of indebtedness in rural and urban households is estimated by the All-India Debt and Investment Surveys (AIDIS) conducted by the National Sample Survey Organisation (NSSO). Latest available data on the percentage of indebted households is as per the 77 th round of NSSO (2018). State/UT wise details of indebtedness as per the last two rounds of AIDIS are given in Annexure 1.

| NSSO Round   |   Urban indebted households(%) |   Rural indebted households(%) |
|--------------|--------------------------------|--------------------------------|
| 70 th (2012) |                           22.4 |                           31.4 |
| 77 th (2018) |                           22.4 |                           35   |

(c) & (D) To address the problem of indebtedness, Government has taken various measures to improve financial inclusion in the country and improve the financial condition particularly of the vulnerable sections. Some of these measures include:

- i. Government initiated the National Mission for Financial Inclusion (NMFI), namely, Pradhan Mantri  Jan  Dhan  Yojana  (PMJDY)  in  August  2014  to  provide  universal banking services for every unbanked household. As on 24 November 2021, a total of 43.90 crore beneficiaries have benefited through PMJDY accounts.
- ii. To  provide  credit  to  Micro  Small  and  Medium  Enterprises  (MSMEs),  MUDRA Scheme  was  launched  by  the  Government  with  the  aim  of  financing  of  small business  enterprises  in  manufacturing,  trading  and  service  sectors.  The  scheme was launched on 8 April  2015. The  loans were  categorized  into  3  categories  to ensure that the credit reaches all kinds of borrowers: Shishu (up to Rs.50,000),

Kishore (Rs.50,000 to Rs.5,00,000) and Tarun (Rs. 5,00,000 to Rs.10,00,000). Out of the total disbursements so far, 87% of loan accounts under the scheme are in Shishu category indicating that the scheme has well targeted the small businesses. About    68%  of  these  loans  have  been  sanctioned  to  women  entrepreneurs  and 51%  to  Scheduled  Caste/Scheduled  Tribe/Other  Backward  Classes  category  of borrowers.

- iii. To  provide  credit  support  to  Scheduled  Caste,  Scheduled  Tribe  and  Women Entrepreneurs from the vulnerable section, Stand Up India scheme was launched in  2016.  As  on  22.11.2021,  credit  support  of  Rs.28211.19  crore  have  been sanctioned under the scheme.
- iv. Under  the  Kisan  Credit  Card  (KCC)  Scheme,  government  provides  interest subvention  of  2%  and  Prompt  Repayment  Incentive  of  3%  to  the  farmers,  thus making  the  credit  available  at  a  very  subsidized  rate  of  4%  per  annum.  Since February 2020, starting of the KCC Saturation Drive for the PM Kisan beneficiaries as a part of the Atmanirbhar Bharat Package, over 2.6 crore farmers have been covered under the scheme, with a sanctioned credit of Rs.2.78 lakh crore.
- v. Low-cost insurance schemes have also been launched to ensure that indebtedness resulting from catastrophies may be avoided. Under Pradhan Mantri Suraksha  Bima  Yojana  (PMSBY)  a  renewable  one-year  accidental  death-cumdisability cover of Rs.2 lakhs is offered to all subscribing bank account holders in the age group of 18 to 70 years for a premium as low as Rs.12/- per annum per subscriber. Another insurance product with one-year term life cover of Rs.2 lakhs under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is made available to all subscribing bank account holders in the age group of 18 to 50 years for a premium of Rs.330/- per annum per subscriber.
- vi. To take care of financial needs in old age, a pension product named Atal Pension Yojana  (APY)  guaranteed  by  the  Government  of  India  has  also  been  made available, thereby reducing the vulnerability of the old-aged people to indebtedness.
5. (e) Question does not arise.

Annex 1: State/UT wise details of indebtedness as per the last two rounds of AIDIS

|                   | Urban              | Urban              | Rural              | Rural              |
|-------------------|--------------------|--------------------|--------------------|--------------------|
| State/UT          | 70 th round (2012) | 77 th round (2018) | 70 th round (2012) | 77 th round (2018) |
| Andhra Pradesh    | 39.8               | 44.9               | 54.1               | 62.8               |
| Arunachal Pradesh | 14.0               | 22.1               | 5.2                | 15.0               |
| Assam             | 17.6               | 20.0               | 10.1               | 19.2               |
| Bihar             | 13.3               | 16.2               | 29.1               | 29.6               |
| Chhattisgarh      | 11.8               | 20.7               | 13.9               | 17.4               |
| Delhi             | 5.6                | 5.7                | 3.3                | 3.1                |

| Goa                  |   16.7 |   14.3 |   17.0 |   13.5 |
|----------------------|--------|--------|--------|--------|
| Gujarat              |   19.4 |   15.8 |   26   |   26.8 |
| Haryana              |   12.5 |   19.6 |   23.9 |   32.1 |
| Himachal Pradesh     |   21.9 |   23.9 |   26   |   27.3 |
| Jammu & Kashmir      |   21.2 |   23.4 |   12.7 |   25.5 |
| Jharkhand            |   11.6 |   16.8 |   18.5 |   21   |
| Karnataka            |   26.5 |   22.6 |   46.4 |   48.1 |
| Kerala               |   47   |   47.8 |   49.5 |   54.5 |
| Madhya Pradesh       |   15.3 |   19.9 |   24.7 |   38.6 |
| Maharashtra          |   18.9 |   19.2 |   31.3 |   33.2 |
| Manipur              |    6.8 |   14.5 |    9.9 |   17.5 |
| Meghalaya            |    7.7 |    5.1 |    2.5 |    9.2 |
| Mizoram              |   15.9 |   19.7 |    5.3 |   13.2 |
| Nagaland             |    3   |   10.2 |    1.5 |    6.6 |
| Odisha               |   18.7 |   20.9 |   25.7 |   40.5 |
| Punjab               |   18.3 |   20.6 |   33.1 |   35.1 |
| Rajasthan            |   22.6 |   22   |   37.4 |   42.5 |
| Sikkim               |   10.3 |   22   |    7.1 |   18.8 |
| Tamil Nadu           |   34.8 |   26.6 |   39.7 |   36.9 |
| Telangana            |   30.5 |   30.2 |   59.1 |   67.2 |
| Tripura              |   12.7 |   20.3 |   10   |   21.2 |
| Uttarakhand          |   13.9 |   15.5 |   25.8 |   30.9 |
| Uttar Pradesh        |   18.9 |   15.6 |   29.6 |   31.3 |
| West Bengal          |   14.7 |   17   |   23.6 |   23.2 |
| A & N Islands        |   30.6 |   23.1 |   17.7 |   19.6 |
| Chandigarh           |   12.3 |    9   |    3.8 |   10.8 |
| Dadra & Nagar Haveli |   18.7 |   14.2 |    4.8 |    6   |
| Daman & Diu          |    7.3 |    6.7 |   16.7 |    7.7 |
| Lakshadweep          |   29.4 |   11.2 |    7.7 |    4.4 |
| Puducherry           |   40.7 |   32.6 |   40.9 |   42.4 |
| All-India            |   22.4 |   22.4 |   31.4 |   35   |