Lok Sabha Question No. 5275 (UNSTARRED), answered on 2026-03-24
Subject: Institutional Credit to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. D Ravi Kumar

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION No. 5275 TO BE ANSWERED ON 24 TH  MARCH, 2026

## INSTITUTIONAL CREDIT TO FARMERS

5275. Dr. D Ravi Kumar:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

- (a) the details of the institutional credit was disbursed to farmers during 2023-24;
- (b) the quantum of credit reached to small and marginal farmers;
- (c) the details of the financial constraints affect access to affordable loans; and
- (d) the details of the steps taken to improve credit flow and interest support?

## ANSWER

MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a): During FY 2023-24, the institutional credit of Rs. 25.49 lakh crore has been disbursed to 17.09 crore farmers.
- (b): Out of total institutional credit disbursed during FY 2023-24, an amount of Rs. 14.40 lakh crore has been disbursed to 13.06 crore Small and Marginal Farmers.
- (c): Government is making adequate provision of funds to implement credit linked schemes to ensure required credit reaches to targeted and deserving beneficiaries.
- (d): The Government of India has taken the following steps in the recent past for deepening and widening of credit flow to farmers:
- i. As per priority Sector Landing (PSL) regulation government has mandated that banks will provide 18% of their total loans to agriculture and allied sector. Since 2016 a sub limit has been fixed for small and marginal farmers which at present is 10%.
- ii.  In  2018-19, the Kisan Credit Card (KCC) facility was extended to farmers engaged in allied activities, including animal husbandry, dairying and fisheries.
- iii. RBI has increased collateral free loan limit in KCC for existing Rs 1.6 lakh to Rs 2 lakh w.e.f., 01.01.2025.
- iv.  To  ensure  transparency, efficiency in administering Modified Interest Subvention Scheme (MISS) and timely  disbursement  of  Interest  Subvention,  a  digital  platform  namely  Kisan  Rin  Portal  (KRP)  has  been launched by the Government for prompt settlement of claims.
- v. Department of Financial Services vide its letter dated 04.02.2019 has advised banks to waive processing, documentation,  inspection,  ledger  folio  charges  and  all  other  service  charges  for  Kisan  Credit  Card (KCC)/crop loans up to Rs. 3 lakh.
- vi. Several other digital initiatives like Krishi Nivesh, and eKCC have been launched for expeditions sanctions of loans.
- vii. Government is administering several schemes for making easy and affordable institution credit to farmers including Modified Interest Subvention Scheme (MISS) and Agriculture Infrastructure Fund (AIF).
- viii. Government have been taking multiple initiative to make availability of  Short Term loan  accessible to farmers through regular IEC campaigns organized by banks, State Government/ Central Government, RBI, NABARD, etc, besides, technology intervention like Kisan Rin Portal (KRP).

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