Strengthen and expand rural credit facilities

Adequate Progress

Interest Subvention Scheme has been transferred to the Department of Agriculture, Cooperation and Farmers Welfare from 2016-17. The schemel helps farmers getting short term crop loan payable within one year up to Rs. 3 lakhs at only 4% per annum. The interest subvention varies from 2% to 5 %. The budget allocated to the interest subvention scheme has been increased from Rs 6,000 crores in 2014-15 to Rs. 15,000 crores in 2017-18.

BJP government has allocated Rs.15,000 crore for 2016-17 to the Long Term Rural Credit Fund (LTRCF) set up in NABARD. The main objective of the Fund is to boost capital formation in agriculture and rural economy. In 2015-16, Rs 45,000 crores were allocated for short term cooperative rural credit refinance fund and Rs 15,000 crores for short term Regional Rural Banks (RRB) refinance fund.

Kisan Credit Cards, launched by the NDA government in 1998-99, have been converted into Rupay Cards by the BJP government.  This step is designed to facilitate the undertaking of financial transactions on a digital platform.

Agriculture credit target has been increased from Rs. 8 lakh crores in 2014-15 to Rs. 10 lakh crores in 2017-18.

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