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Agriculture loans exceed target by 13% in FY10

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 12:57 AM IST

Agricultural credit flow by cooperative and public sector banks exceeded the target by 13 per cent in 2009-10 financial year.

"The flow of credit to the agriculture sector increased significantly and banks have surpassed the target by extending Rs 3,67,000 crore worth of loan to farmers," an Agriculture Ministry official informed.

The banks including public sector, cooperative and regional rural banks (RRBs), were set a target to lend Rs 3,25,000 crore of credit to farmers last fiscal.

The farm credit was extended to as many as 4.82 crore farmers last year and banks gave crop loan to 91 lakh new farmers.

According to official data, public sector banks lent Rs 2,75,000 crore of farm credit, while co-operative and RRBs loaned Rs 58,000 crore and Rs 34,000 crore respectively in 2009-10.

The total farm credit flow in 2009-10 fiscal was higher than the previous year's Rs 3,02,000 crore, the official said.

Usually, farmers are given credit at an interest rate of seven per cent per annum. However, in a move to reward those farmers who make their loan payment on time, the Central Government reduced their loan interest rate to 6 percent last year and 5 per cent this year.

 

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First Published: Jun 28 2010 | 2:41 PM IST

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