Lok Sabha Question No. 181 (STARRED), answered on 2024-08-05
Subject: Difficulty in Getting Loans in Rural Areas
Ministry: FINANCE
Asked by: Shri Ramprit Mandal

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO. *181

## ANSWERED ON MONDAY, 05/08/2024/ SHRAVANA 14, 1946 (SAKA)

## DIFFICULTY IN GETTING LOANS IN RURAL AREAS

## *181.    SHRI RAMPRIT MANDAL:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware of the difficulties being faced by the people, particularly in the rural areas in getting loans under major schemes due to procedural issues and reluctance of banks in providing loans;
- (b) if so, the details thereof along with the steps taken by the Government to resolve the said issues;
- (c)  the  number  of  applications  received,  sanctioned  and  rejected  under  each  of  the  major  credit/loan schemes particularly in the rural areas during the last three years;
- (d)  whether the Government has conducted any study or survey to identify any particular procedural issues and other reasons, which causes reluctance of banks in providing loans under the said schemes;
- (e) if so, the details thereof including outcome of such studies and surveys; and
- (f)  the  measures proposed by the Government to simplify the loan application process and to ensure timely disbursal of loans in the rural areas to boost economic development?

## ANSWER

## THE FINANCE MINISTER

## (Smt. Nirmala Sitharaman)

(a) to (f): A statement is laid on the Table of the House

*****

## 1 st  POSITION

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.*181 (1 ST   POSITION)  FOR  ANSWER  ON  05.08.2024  BY  SHRI  RAMPRIT  MANDAL  ON DIFFICULTY IN GETTING LOANS IN RURAL AREAS

(a) and (b): In order to overcome the challenges faced by borrowers, particularly in rural areas and to facilitate easy flow of credit to cater the needs of population, Government has taken various measures which inter-alia includes:

-  Launch  of  various  credit  linked  schemes  such  as  Agricultural  Infra  Fund  (AIF),  Animal Husbandry Infrastructure Development Fund (AHIDF) , Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Pradhan Mantri Mudra Yojana (PMMY) , Stand Up India (SUPI), PM Vishwakarma etc.
-  Launching KCC Scheme for Animal Husbandry & Fisheries
-  Increase in the limit for collateral-free agriculture loans from Rs. 1 lakh to Rs. 1.6 lakh
-  Periodic Financial Literacy & awareness camps by banks
-  Provision of Credit Guarantee coverage and interest subsidy on loans sanctioned under various Government schemes
-  Expansion of bank branch network and banking outlets
-  Expanding the network of Business Correspondents

(c): The number of applications received and rejected for different loan schemes is not maintained centrally. The sanction data for the major credit schemes is placed at Annexure.

(d) to (f):   The Government has taken several measures in order to simplify the loan application process and ensure the timely disbursal of loans. Portals like Jan Samarth has been created with 15 credit linked schemes (including KCC) where the applicant can have the self-journey or assisted journey for applying specified loans. Department of Financial Services also monitors scheme specific pendency from the data available on the Jan Samarth portal.  Many banks are in the process of streamlining the entire process of loan sanction through end to end digitization.

*****

## Annexure for Lok Sabha Starred Question No. *181 'Difficulty in Getting Loans in Rural Areas' due for answer on 05.08.2024 Sanction data, year-wise, for Major Credit Schemes

|                                                                   | FY 2021-22                                         | FY 2021-22                                         | FY 2022-23                                         | FY 2022-23                                         | FY 2023-24      | FY 2023-24          |
|-------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|----------------------------------------------------|-----------------|---------------------|
| Name of Scheme                                                    | No. of accounts                                    | Sanctioned Amount                                  | No. of accounts                                    | Sanctioned Amount                                  | No. of accounts | Sanctioned Amount   |
| Kisan Credit Card ( Cumulative O/s)                               | 7.13 crore                                         | Rs. 9.37 lakh crore                                | 7.34 crore                                         | Rs.8.85 lakh crore                                 | 7.75 crore      | Rs. 9.82 lakh crore |
| Pradhan Mantri Mudra Yojana                                       | 5.37 crore                                         | Rs.3.39 lakh crore                                 | 6.23crore                                          | Rs.4.56 lakh crore                                 | 6.67 crore      | Rs. 5.41 lakh crore |
| Stand Up India                                                    | 21,714                                             | Rs.4,500 crore                                     | 47,977                                             | Rs.8,944 crore                                     | 41,436          | Rs. 8,896 crore     |
| Agricultural Infra Fund                                           | 7,438                                              | Rs.5410 crore                                      | 16,387                                             | Rs.14,506 crore                                    | 61,584          | Rs. 40,082 crore    |
| Animal Husbandry Infrastructure Development Fund                  | 95                                                 | Rs.2372 crore                                      | 164                                                | Rs.1,823 crore                                     | 363             | Rs. 6,893 crore     |
| Pradhan Mantri Formalisation of Micro Food Processing Enterprises | 2,522                                              | Rs.232 crore                                       | 29,563                                             | Rs.1,958 crore                                     | 86,342          | Rs. 6,949 crore     |
| PM Vishwakarma (as on 31.07.2024)                                 | Sanctions under the Scheme started from April 2024 | Sanctions under the Scheme started from April 2024 | Sanctions under the Scheme started from April 2024 | Sanctions under the Scheme started from April 2024 | 57,451          | Rs. 561 crore       |

*****