Farm credit worth Rs 1.38 lakh crore disbursed in H1
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Farm credit worth Rs 1.38 lakh crore disbursed in H1

Last Updated: Thursday, November 19, 2009, 20:42
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Farm credit worth Rs 1.38 lakh crore disbursed in H1 New Delhi: Banks and co-operatives have disbursed farm loans to the tune of Rs 1.38 lakh crore in the first half of 2009-10, meeting over 42 per cent of the target set by the government for the whole financial year.

"Rs 1.38 lakh crore has been disbursed to farmers across the country as agriculture credit up to September, 2009.... The target to be achieved during 2009-10 is to the tune of Rs 3.25 lakh crore," an official statement said here today.

Of the farm loans offered till September, commercial banks account for 92,595.08 crore, co-operatives Rs 27,704.85 crore and regional rural banks Rs 17,531.31 crore, it added.

While the government has set a target of disbursing farm loans worth Rs 2.5 lakh crore for commercial banks, both co-operatives and regional rural banks are supposed to extend credit to the tune of Rs 45,000 crore and Rs 30,000 crore, respectively, during this fiscal.

Presenting the Budget 2009-10, Finance Minister Pranab Mukherjee had announced farm loans at a subsidised interest rate of six per cent for those who pay their dues in time and raised the agriculture sector credit target by 16 per cent to Rs 3,25,000 crore this fiscal.

At present, farm loans are extended at an interest rate of seven per cent per annum.

Bureau Report

First Published: Thursday, November 19, 2009, 20:42

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