For agricultural loans, bankers call for longer repayment period

There were also suggestions to have an agriculture credit guarantee scheme, and a stronger institutional network to prevent multiple lending in the agriculture sector

In view of the significant stress in the agriculture sector, bankers at the state-level consultancy meet in Kolkata have called for longer repayment periods for loans under Kisan Credit Card (KCC) from 12 months to 36 or 48 months. 

There were also deliberations on allowing farmers to take fresh loans even if they fail to repay the entire loan, as long as they service the interest. 

Based on direction from the department of financial services, public sector banks started a three-stage consultation process last week. 

They focused on nine issues, including digital banking, credit to micro, small and medium enterprises (MSMEs), and agriculture