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Share of Small Farmers in Farm Loans Grows to 45 Per Cent

27 November 2012

INDIA - The government of India has taken several measures to improve credit flow to small and marginal farmers.

These measures include fixation of annual targets for improving agricultural credit flow, provision of crop loans upto Rs. 3.00 lakh at four per cent per annum to farmers who repay their loan as per the repayment schedule fixed by the banks, extention of benefit of interest subvention scheme to small and marginal farmers having Kisan Credit Card for a further period upto six months for storing their produce in warehouses against negotiable warehouse receipts, collateral free loan upto Rs. 1.00 lakh, implementation of revival package for short term cooperative credit structure in the country etc.

The agriculture credit flow during the year 2009-10, 2010-11 and 2011-12 was Rs. 3,84,514 crore, Rs.4,68,291 crore and Rs. 5,11,029 crore respectively.

During this period credit flow to small and marginal farmers was Rs. 1,22,654 crore, Rs. 1,67,739 crore and Rs. 2,27,835 crore respectively which is 32 per cent, 36 per cent and 45 per cent of the total loan disbursed to the farmers during these years.

TheCropSite News Desk

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