Farm credit worth Rs 7.57 lakh crore was disbursed by during the first nine months (Apr-Dec) of the 2016-17 fiscal which is likely to surpass the target, Parliament was informed.
The agri-credit target for 2016-17 fiscal is Rs 9 lakh crore, while for the current year it is Rs 10 lakh crore.
"The actual achievement of ground level credit flow has surpassed the targets in 2014-15 and 2015-16. In 2016-17 as well, the achievement as in December 2016 is Rs 7,57,311 crore and likely to suprass the target," Minister of State for Agriculture, Parshottam Rupala said in the Lok Sabha.
The government announces annual farm credit targets towards production credit (shorter term crop loan) and investment credit (term loan), he said in a written reply.
Farmers get short-term crop loans of up to Rs 3 lakh at subsidised interest of 7 per cent per annum. For prompt repayment, they get additional incentive of 3 per cent, making the effective interest rate 4 per cent.
Replying to a query on delay in clearing banks' claims towards disbursing farm loans at a subsidised rate, the Minister said that the banks should submit their audited claims to NABARD and RBI on a half yearly basis which are then fowarded to the government for settlement on quarterly basis.
"The government clears the audited claims as and when these are received from NABARD/RBI. There is no proposal to provide 90 per cent of the claim amount in advance," he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
