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Press Information Bureau
Government of India
Ministry of Agriculture & Farmers Welfare
08-November-2010 14:53 IST
Over Rs. 89,000 Crore Agriculture Credit Disbursed to Farmers till June 2010
Agriculture credit of Rs. 89, 687 crore has been disbursed to farmers across the country till June 2010 in 2010-11 as against credit flow target of Rs.375,000 crore. Credit disbursement in 2009-10 was to the tune of Rs. 366,919 crore (provisional figures) against the target of Rs.325,000 crore. The flow of agriculture credit since 2003-04 has consistently exceeded the target. Agriculture credit flow has gone up from Rs. 86,981 crore in 2003-04 to Rs 366,919 crore in 2009-10.

Government has taken several measures for improving agricultural credit flow and bringing down the rate of interest on farm loans. Agriculture credit plays an important role in improving agricultural production, productivity and mitigating the distress of farmers.

From Kharif 2006-07, farmers are receiving crop loans upto a principal amount of Rs.3 lakh at 7% rate of interest. In 2009-10, an additional 1% interest subvention was provided to those farmers who repaid their short term crop loans as per schedule. The subvention rate for timely repayment of crop loans has been raised from 1% to 2% from the current fiscal thus bringing down the effective rate of interest for such farmers to 5 % p.a. The limit of collateral free farm loan has also been increased from Rs.50,000 to Rs.1,00,000 .

As part of government initiative to provide Kisan Credit Card to all the eligible and willing farmers in a time bound manner 9.48 crore KCCs have been issued upto June, 2010. The State Governments have been advised to launch an intensive branch/village level campaign to cover all eligible and willing farmers.

MP:SB: CP agriculture credit (8.11.2010)