Lok Sabha Question No. 361 (UNSTARRED), answered on 2025-02-04
Subject: Kisan Credit Card loan
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Ramashankar  Vidharthi Rajbhar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION No. 361

TO BE ANSWERED ON THE 04 TH  FEBRUARY, 2025

## KISAN CREDIT CARD LOAN

361. SHRI RAMASHANKAR RAJBHAR: state:

Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to (a) whether KCC loans are provided for the welfare of farmers; (b) if so, the details thereof; (c)  whether there is any scheme to waive off the loans of farmers whose land and houses  have  got  submerged  in  river  or  whose  crops  have  got  damaged  due  to natural calamities; (d) if not, the reasons therefor; (e) whether the Government is likely to formulate any scheme to waive off the KCC

loans of such farmers; and

(f) if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

(a) & (b): Kisan Credit Cards (KCC) are provided to farmers to avail agriculture credit to meet their operational requirements. Loans under KCC are provided at affordable interest rate of 7% per annum and for this financial institutions are provided upfront Interest  Subvention  (IS)  of  1.5  %  through  Modified  Interest  Subvention  Scheme (MISS). Besides, an additional 3% Prompt Repayment Incentive (PRI) is also given to the farmers for prompt and timely repayment of loans; thus, reducing the effective interest rate to 4% per annum. IS and PRI benefit is available for a loan limit of Rs. 3 lakhs only. In case of short term loan is availed for allied activities only (other than crop husbandry), the loan amount is limited Rs. 2.00 lakh only.

(c)  &  (d):  There  is  no  loan  waiver  scheme  being  implemented  by  Department  of Agriculture & Farmers Welfare. Reserve Bank has issued Master Direction - Relief Measures by banks in areas affected by Natural Calamities 2018 dated October 17, 2018 separately to  Scheduled Commercial Banks (excluding RRBs) and to  RRBs. As  per  the  Master  Directions,  in  the  event  of  natural  calamities  declared  by  the State/Central Government all short-term KCC loans, except those which are overdue at the time of occurrence of natural calamity, shall be eligible for restructuring. Fresh loans can also be sanctioned by banks to affected borrowers. Agricultural term loan installments shall also be rescheduled keeping in view the repaying capacity of the borrower  and  the  nature  of  natural  calamity.  Also  depending  on  the  severity  of  a natural calamity, SLBC/DCC shall take a view as to whether a general rescheduling of all other loans (i.e. besides the agriculture loans) such as loans granted for allied activities,  loans  to  rural  artisans,  traders,  micro/small  industrial  units  or  in  case  of extreme situations, medium enterprises are required. Additionally, this Department is implementing the Pradhan Mantri Fasal Bima Yojana(PMFBY) since 2016 across the country. The scheme is voluntary for farmers and  States.  As  per  provision  of  the  scheme,  admissible  claims  in  r/o  widespread calamities  like  drought,  flood  etc.  are  worked  out  and  paid  directly  to  the  insured farmers'  accounts  by  the  insurance  companies  based  on  yield  data  per  unit  area, furnished to insurance company by the State Govt. concerned and claim calculation formula envisaged in operational guidelines of the scheme. However, losses due to localized risks of hailstorm,  landslide,  inundation, cloud  burst,  natural  fire  and  post are circulated on individual farm basis. Here farmers are required to intimate the event of loss  to  insurance  company/State  Govt./concerned  financial  institution/portal/app within  72  hours  of  the  loss.  These  claims  are  assessed  by  a  joint  committee harvest losses due  to cyclone,  cyclonic/unseasonal  rains  and hailstorms comprising representations of State Govt. and concerned Insurance Company.

(e) & (f): There is no such proposal.

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