In the upcoming interim budget, the government may announce an increase in the farm credit target to Rs 22-25 lakh crore for the next financial year. Ensures access to institutional loans to every eligible farmer. The government's agricultural credit target for the current financial year is Rs.20 lakh crore.
At present, the government has given all financial institutions Rs. 2% interest subvention on short-term agricultural loans up to 3 lakhs. This means that farmers are getting agricultural loans up to Rs.3 lakh annually at seven percent subsidy.
Additional interest subsidy of three percent per annum is also given to the farmers who pay on time. Farmers can also take long term loans. But according to the market rate of interest rate.. the agricultural loan target may increase to Rs.22-25 lakh crore in the financial year 2024-25. Paying more attention to agricultural loans.
Also, the government is running several campaigns to identify eligible farmers and bring them under the credit network. According to a report, the agriculture ministry has also created a special department on 'credit' (for loans) as part of the centralization policy.
Moreover, disbursement of loans for various agricultural and allied activities has exceeded the target in the last 10 years. Agricultural loan target for the current financial year is Rs. 20 lakh crores more than the characteristic. 7.34 crore farmers have availed loans through Kisan Credit Card (KCC) network. Till March 31, 2023, about Rs. 8.85 lakh crore worth of loans outstanding. 🌱✨
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