The government today said it has disbursed farm credit worth Rs 2.28 lakh crore in the first seven months of 2010-11 and expects to exceed the target of Rs 3.75 lakh crore for the financial year.
"Farm credit of Rs 2.28 lakh crore has been disbursed across the country as on October 31, 2010. With 3 months still remaining in the current fiscal for credit disbursal ... credit flow target of Rs 3.75 lakh crore is likely to be exceed again," an official release said.
During the 2009-10 fiscal, the total credit disbursement was to the tune of Rs 3.84 lakh crore whereas the target was Rs 3.25 lakh crore, the release said.
The government provides loans at a rate of five per cent to those farmers, who repay their credits on time.
"The flow of agriculture credit since 2003-04 has consistently exceeded the target," it added.
The total flow of credit to agriculture sector has gone up from Rs 86,981 crore in 2003-04 to Rs 3.84 lakh crore in 2009-10, the release said.
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Of the total credit of Rs 2.28 crore disbursed to the farm sector, maximum loans to the sector were given by commercial banks.
During the current fiscal, commercial banks disbursed Rs 1.71 lakh crore as agricultural loans followed by co- operative banks, which had disbursed loans worth Rs 34,299 crore to farmers in the first seven months of the current fiscal.
The total loan disbursed by Regional Rural Banks in the current fiscal till October stood at Rs 23,434 crore, the release said.