Loan waiver to take care of borrowings under Kisan Credit Card
Farmers, who took agriculture loans through Kisan Credit Card, will be covered under the Rs 60,000 crore loan waiver scheme announced in the Union Budget.
By PTI |
NEW DELHI: Farmers, who took agriculture loans through Kisan Credit Card, will be covered under the Rs 60,000 crore loan waiver scheme announced in the Union Budget, government on Tuesday said.
Replying to supplementaries during Question Hour in Rajya Sabha, Minister of State for Finance Pawan Kumar Bansal said the loan waiver scheme would be applicable to production credit and short term inventory credit taken on the Kisan Credit Card.
Over 7 crore Kisan Credit Cards have been issued to farmers till date from its inception in 1998. In 2006-07, 85.11 lakh cards were issued an Rs 46.72 lakh credit extended to farmers through these.
"The aim of the Government is to extend the Kisan Credit Card to all eligible farmers in the country," he said. "All categories of farmers including tenant farmers, share croppers, oral lessees are eligible for a Kisan Credit Card from the co-operative banks, regional rural banks and commercial banks throughout the country."
Bansal said though the Kisan Credit Card scheme was launched by the previous NDA government, only 1.14 crore cards were issued when in 2004 it demitted office.
Loans to farmers, he said, was available at 7 per cent interest rate, which is two percentage points less than the prime lending rate of 9 per cent.
Government is giving two per cent subsidy to farmer loan and this in 2006-07 amounted to Rs 875 crore, he said.
Farmers can through Kisan Credit Card avail timely credit which can be repaid anytime to reduce their interest burden.
Crop loans disbursed under KCC scheme for notified crops are covered under National Agricultural Insurance Scheme.
Replying to supplementaries during Question Hour in Rajya Sabha, Minister of State for Finance Pawan Kumar Bansal said the loan waiver scheme would be applicable to production credit and short term inventory credit taken on the Kisan Credit Card.
Over 7 crore Kisan Credit Cards have been issued to farmers till date from its inception in 1998. In 2006-07, 85.11 lakh cards were issued an Rs 46.72 lakh credit extended to farmers through these.
"The aim of the Government is to extend the Kisan Credit Card to all eligible farmers in the country," he said. "All categories of farmers including tenant farmers, share croppers, oral lessees are eligible for a Kisan Credit Card from the co-operative banks, regional rural banks and commercial banks throughout the country."
Bansal said though the Kisan Credit Card scheme was launched by the previous NDA government, only 1.14 crore cards were issued when in 2004 it demitted office.
Loans to farmers, he said, was available at 7 per cent interest rate, which is two percentage points less than the prime lending rate of 9 per cent.
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Government is giving two per cent subsidy to farmer loan and this in 2006-07 amounted to Rs 875 crore, he said.
Farmers can through Kisan Credit Card avail timely credit which can be repaid anytime to reduce their interest burden.
Crop loans disbursed under KCC scheme for notified crops are covered under National Agricultural Insurance Scheme.
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