New Delhi: Agricultural credit flow by cooperative and public sector banks exceeded the target by 13% in 2009-10 financial year.
“The flow of credit to the agriculture sector increased significantly and banks have surpassed the target by extending Rs3,67,000 crore worth of loan to farmers,” an Agriculture Ministry official informed.
The banks including public sector, cooperative and regional rural banks (RRBs), were set a target to lend Rs3,25,000 crore of credit to farmers last fiscal.
The farm credit was extended to as many as 4.82 crore farmers last year and banks gave crop loan to 91 lakh new farmers.
According to official data, public sector banks lent Rs2,75,000 crore of farm credit, while co-operative and RRBs loaned Rs58,000 crore and Rs34,000 crore respectively in 2009-10.
The total farm credit flow in 2009-10 fiscal was higher than the previous year’s Rs3,02,000 crore, the official said.
Usually, farmers are given credit at an interest rate of 7% per annum. However, in a move to reward those farmers who make their loan payment on time, the Central government reduced their loan interest rate to 6% last year and 5% this year.