The government provides 2 percent interest subsidy to the farmers so that they can get a loan of up to 3 lakh rupees for a short period at 7 percent interest.
Agriculture loan in budget 2021: The government can increase the target of agricultural loan to about Rs 19 lakh crore in the budget of 2021-22, keeping in mind the objective of doubling the income of farmers by 2022. The budget will be presented on 1 February. Experts say that for the current financial year, the government has set a target of Rs. 15 lakh crore for the loan of farmers.
Sources said that the government has been increasing the target of loans every year for the agriculture sector and this time too, the target for 2021-22 can be increased to about Rs 19 lakh crore.
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Finance Minister Nirmala Sitharaman, while presenting the budget for 2020-21, said that non-banking financial companies (NBFCs) and cooperative banks have been very active in terms of lending to the agriculture sector. The NABARD (National Bank for Agriculture and Rural Development) refinance scheme will be further expanded. For the financial year 2020-21, the target of agricultural credit has been kept at Rs 15 lakh crore.
Agricultural loan is increasing continuously
According to sources, agricultural credit flow has increased from year to year. Whatever the target has been kept, the work of disbursing loans has been more than that. In the year 2017-18, the farmers were given a loan of Rs 11.68 crore while the target was Rs 10 lakh crore. Similarly, in 2016-17, 10.66 lakh crore crop loans were disbursed. This was more than the target of nine lakh crore rupees.
Weed protection (farm credit target)
According to sources, loan is necessary to increase agricultural production. On getting loans from banks easily, farmers do not have to take loans from moneylenders and money lenders and do not have to pay much interest.
Normally, the interest on agricultural loans remains at 9 per cent, but the government provides interest subsidy so that loans for short term agriculture are provided to the farmers at cheaper rates and to promote agricultural production.
Farmers get loan at 4%
The government provides 2 percent interest subsidy to the farmers so that they can get a loan of up to 3 lakh rupees for a short period at 7 percent interest. Apart from this, three percent assistance is given to those farmers who repay the loan on time. This puts the interest at 4 percent.
