The flow of credit to the agriculture sector has gone up to 7 lakh crore rupees. Replying to supplimentaries during question hour Minister of State for Finance Jayant Sinha said, Government provides interest subvention of 3 percent to farmers if they repay their short term loans on time.

The minister said that around 75 per cent of loans to farmers is given through Financial and micro financial institutions. He said Joint Liability Groups have been promoted by the banks to bring small, marginal, tenant farmers into the fold of institutional credit. The minister said, the banks have also been advised by RBI to waive margin and security requirements of agricultural loans up to one lakh rupees. He urged the members to guide the farmers to take farm loans from banks and financial institutions instead of getting in trap of money lenders.

The minister said that till now 14 crore Kisan Credit Cards have provided to the farmers to ensure hassle free timely credit for the agricultural operations. Mr Sinha informed the members that Kisan Credit Card Scheme has been simplified and converted into ATM enabled debit card with inter alia facilities of one time documentation and built in cost escalation in the limit etc.