Press Information Bureau
Government of India
Ministry of Agriculture & Farmers Welfare
03-December-2010 15:43 IST
Over 86,000 Crore Farm Loan Disbursed to Farmers by August this Year by Nationalised Banks
The total loan amount disbursed to farmers during 2010-11 (April, 2010 to August, 2010) by Public Sector commercial banks is Rs.86,284.70 crore.

It has benefited 77.68 lakh farmers for meeting their credit requirements for agricultural operation purposes.

In order to provide concessional/liberalized loan to the farmers, effective from Kharif 2006-07, the Government is providing crop loans upto a principal amount of Rs.3 lakh at 7% rate of interest. In the year 2009-10, Government provided an additional 1% interest subvention to those farmers who repaid their short term crop loans as per schedule. The Government has raised this subvention for timely repayment of crop loans from 1% to 2% from the year 2010-11. Thus the effective rate of interest for such farmers will be 5% p.a. Besides, the limit of collateral free farm loan has been increased from 50,000 to 1,00,000.

At present, there is no proposal to bring down the rate of interest to.4% or less for farmers for purchasing tractors, seeds and other agricultural equipments.

This information was given by Prof. K.V. Thomas, Minister of State for Agriculture in written reply to a question in the Rajya Sabha.

MP: SB:CP: loan (3.12.2010)