Question: Central government’s target of short term crop loan for farmers during 2016-17 was …
(a) Rs. 6,15,000 crore.
(b) Rs. 500000 crore.
(c) Rs. 300000 crore.
(d) Rs. 500000 crore.
Ans: (a)
Related Fact :
- On June 14, 2017, the Union Cabinet chaired by Prime Minister Narendra Modi approved the Interest Subvention Scheme (ISS) for farmers for the year 2017-18.
- The interest subvention will be given to Public Sector Banks (PSBs), Private Sector Banks, Cooperative Banks and Regional Rural Banks (RRBs) on use of own funds and to NABARD for refinance to RRBs and Cooperative Banks.
- The Interest Subvention Scheme will continue for one year and it will be implemented by NABARD and RBI.
- This will help farmers getting short term crop loan up to Rs. 3 lakh payable within one year at only 4% per annum. The Government has earmarked a sum of Rs. 20,339 crore for this purpose.
- The objective of the scheme is to make available agricultural credit for Short Term crop loans at an affordable rate to give a boost to agricultural productivity in the country.
- As per the scheme the Central Government will provide interest subvention of 5 per cent per annum to all prompt payee farmers for short term crop loan upto one year for loan upto Rs. 3 lakhs borrowed during the year 2017-18.
- Farmers will thus have to effectively pay only 4% as interest. In case farmers do not repay the short term crop loan in time they would be eligible for interest subvention of 2% as against 5% available above.
- The Central Government will provide approximately Rs. 20,339 crore as interest subvention for 2017-18.
- The central government has approved an interest subvention of 2% i.e. an effective interest rate of 7% for loans upto 6 months to small and marginal farmers for post harvest storage of their produce.
- Farmers affected by natural calamities will be given relief by 2% interest subvention for the first year on the restructured amount.
- Notably, this scheme has been running since 2006-07. Under this, the farmers can avail concessional crop loans of upto Rs.3 lakh at 7% rate of interest. It also provides for an additional subvention of 3% on prompt repayment within a period of one year from the date of advance.
- As a measure to check distress sale, post-harvest loans for storage in accredited warehouses against Negotiable Warehouse Receipts (NWRs) are available for upto 6 months for KCC holding small & marginal farmers.
- This provides institutional credit to the farmers and disengages them from non-institutional sources of credit, where they are prone to exploitation by private money lenders.
- During the year 2016-17, the volume of short term crop loan lent stood at Rs.6,22,685 crore, surpassing the target of Rs. 6,15,000 crore.
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=165625