Curated By: Business Desk
Last Updated: January 23, 2024, 13:49 IST
For the present monetary 12 months, the agriculture credit score goal is Rs 20 lakh crore.
The central authorities is ready to announce a rise within the agricultural credit score goal for the upcoming fiscal 12 months within the forthcoming interim price range.
The central authorities is poised to announce a rise within the agricultural credit score goal for the upcoming fiscal 12 months within the imminent interim price range, probably starting from Rs 22 to 25 lakh crore. This transfer is anticipated to make sure that eligible farmers have continued entry to institutional credit score, surpassing the present monetary 12 months’s agricultural credit score goal of Rs 20 lakh crore, sources mentioned.
Currently, the federal government offers a 2% curiosity subsidy on brief-time period agricultural loans as much as Rs 3 lakh for all monetary establishments. This permits farmers to acquire agricultural loans as much as Rs 3 lakh at a reduced rate of interest of seven% per 12 months. Additionally, farmers are provided an additional curiosity rebate of three% per 12 months for well timed mortgage reimbursement. While farmers also can avail lengthy-time period loans, the rates of interest align with prevailing market charges. Sources recommend that the agricultural credit score goal for the monetary 12 months 2024-25 could also be raised to Rs 22-25 lakh crore.
The authorities’s concentrate on agricultural credit score is obvious via numerous campaigns geared toward figuring out eligible farmers and integrating them into the credit score community. The agriculture ministry has established a devoted division for credit score as a part of its complete strategy.
Sources declare that during the last decade, agricultural mortgage disbursements have constantly exceeded the set targets. Government knowledge signifies that by December 2023, about 82% of the agri-credit score goal of Rs 20 lakh crore for the present monetary 12 months has been achieved, with roughly Rs 16.37 lakh crore disbursed to each personal and public banks throughout this era. It is estimated that, as soon as once more, agricultural credit score distribution will surpass the set goal for this monetary 12 months.
In the monetary 12 months 2022-23, the overall agricultural credit score disbursement reached Rs 21.55 lakh crore, exceeding the set goal of Rs 18.50 lakh crore by Rs 3.05 lakh crore. Notably, knowledge additionally revealed that 7.34 crore farmers availed loans via the Kisan Credit Card (KCC).
This proactive strategy by the federal government underscores its dedication to supporting farmers and fostering progress within the agriculture sector.
