In the interim budget for FY 2025, the government may raise the farm loan goal to Rs 22–25 lakh crore

In the interim budget for FY 2025, the government may raise the farm loan goal to Rs 22–25 lakh crore

In the interim budget for FY 2025, the government may raise the farm loan goal to Rs 22–25 lakh crore

The government has set a goal of Rs 20 lakh crore for farm loans for the current fiscal year. For all banking institutions, the government now offers a two percent interest subsidy on short-term agricultural loans up to Rs 3 lakh.

Long-term loans are available to farmers as well, although the interest rate is determined by the market.

Sources claim that the government would guarantee that all qualified farmers have access to institutional finance and may raise the agricultural credit goal for the 2019 fiscal year to Rs 22–25 lakh crore in the forthcoming interim budget.

The government has set a goal of Rs 20 lakh crore for farm loans for the current fiscal year. For all banking institutions, the government now offers a two percent interest subsidy on short-term agricultural loans up to Rs 3 lakh. This indicates that farmers are eligible for agricultural loans up to Rs 3 lakh, at an annual interest rate of 7% concessional.

Farmers who complete their payments on time will also get an additional interest refund of three percent annually. Long-term loans are available to farmers as well, although the interest rate is determined by the market. According to sources, the agriculture-credit objective for the fiscal year 2024–2025 may rise significantly to between Rs 22 and 25 lakh billion.

Agri-credit is reportedly receiving greater attention, and the government is launching several initiatives to find the qualified farmers who have been left out and integrate them into the credit system. According to insiders, the agricultural ministry has also established a distinct "credit" section to provide a targeted approach.

Furthermore, according to reports, loan disbursements for a range of agricultural and related operations have surpassed the goal for the last ten years. Approximately 82% of the Rs 20 lakh crore agricredit goal by December 2023 has been reached in the current fiscal year. Official data indicates that throughout the specified time, loans of around Rs 16.37 lakh crore were issued by both public and commercial banks. has shown.

According to reports, "agri-credit disbursement is likely to exceed the target this financial year also." The total amount of agricultural loan disbursed in FY 2022–2023 was Rs 21.55 lakh crore, above the objective of Rs 18.50 lakh crore for the same period.

The statistics indicates that 7.34 crore farmers have used the Kisan Credit Card network to get loans (KCC). As of March 31, 2023, there was almost Rs 8.85 lakh crore in outstanding amounts. The proportion of indebted agricultural families is 50.2%, according to the 2019 NSS Report on Assessment of Land and Livestock Holding Status of Agricultural families and Households in Rural India. nation. of which institutional sources accounted for 69.6% of the outstanding debt.

According to individuals who saw the NSS data, a significant portion of agricultural families still lack access to institutional finance. The goal of the government is to include these individuals in the official credit system. As a consequence, the government, with a specific emphasis on the vulnerable, has launched three separate programs in the past three months to achieve 100% coverage in KCCs: the "Ghar Ghar KCC Abhiyaan," the "Vikas Bharat Sankalp Yatra," and the "PM-Janman" campaign. concentrating on reaching saturation. 'PVTGs (Tribal Groups)', he continued.

Farmers, fisherman, and tribal farmers who are excluded are being handed KCCs.