Press Information Bureau

Government of India

Ministry of Finance

06-December-2012 17:42 IST

The total amount of loan given to farmers from April 2007-March 2012 is as under:- 

The Government of India has taken several measures for the availability of credit to farmers in general and small and marginal farmers in particular.  These include:

(i) The interest Subvention Scheme is being implemented by the Government of India since 2006-07 to make short-term crop loans upto Rs. 3 lakh for a period of one year available to farmers at the interest rate of 7 per cent per annum.  The Government of India has since 2009-10 been providing additional interest subvention to prompt payees farmers, i.e. those who repay their loans in time.  The additional subvention was 1% in 2009-10, 2% in 2010-11 and 3% in 2011-12.  Further, in order to discourage distress sales, the benefit of interest subvention was made available in the year 2011-12 to small and marginal farmers having Kisan Credit Card for a further period of up to six months post harvest on the same rates as available to crop loans against negotiable warehouse receipts for keeping their produce in warehouses.  The interest subvention Scheme for the year 2011-12 has been continued in 2012-13 as well.

(ii)  The Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008 has de-clogged the line of credit that were clogged due to the debt burden on the farmers.  Under the Scheme 3.45 crore farmers have been benefited to the extent of Rs. 52,275.55 crore.

(iii)  Banks have been advised to dispense with the requirement of “no dues” certificates for small loans up to Rs. 50,000 to small and marginal farmers, share-croppers and the like and instead obtain a self-declaration from the borrower.

(iv) RBI has advised banks to waive margin/security requirements for agricultural loans upto Rs. 1,00,000.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the  Rajya  Sabha today.

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DSM/RS/bs

Interest subvention scheme extends concessional rates and prompt pay incentives to short term crop borrowers, enhancing credit access to small farmers. The note reports total farmer disbursements for April 2007-March 2012 and outlines measures to improve credit access for small and marginal farmers, principally the Interest Subvention Scheme with additional prompt payment subvention and post harvest coverage for Kisan Credit Card holders, the Agricultural Debt Waiver and Debt Relief Scheme, waiver of 'no dues' certificate requirements for small loans in favour of self declaration, and RBI guidance to waive margin/security for small agricultural loans.