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Minister Urges Banks to Ease the Loan Process

Farmers' income will increase when the cost of production comes down and productivity improves

Policy Pulse
Publish Date: Jul 13 2016 1:31PM | Updated Date: Jul 13 2016 1:54PM

Minister Urges Banks to Ease the Loan Process
Demo Photo of Radha Mohan Singh ( Agricultural Minister) 
 
 
Considering financial problems being faced by farmers of this country, Agriculture Minister, Radha Mohan Singh has asked banks across the country to strive towards making the loan seeking process easy for them.
 
 
The minister said all these in his valedictory speech at NABARD event.
 
 
He has requested banks to not to delay disbursement of crop loans and provide ‘hassle free’ loan facility taking Jan Dhan, Aadhar, in to the notice. 
 
 
The government has set an agricultural credit target for banks at Rs 9 lakh crore for the current fiscal, up from Rs 8.5 lakh crore in 2015-16. 
 
 
The government will also be providing short term loans up to Rs 3 lakhs for a period of one year at a subsidized rate of interest of 7 percent and an additional subvention of 3 percent that will be given to those farmers who repay on time.
 
 
Defending PM Modi’s statement of describing the doubling of farmers income by 2022 to be ‘skeptical’, the minister said that although, it is difficult ot achieve the target but not impossible and the government is working towards it.
 
 
In addition, he said that Besides MSP, the Modi government is looking at addressing fundamental issues like raising productivity not only of land, but water, fertiliser and all other inputs used in agriculture.
 
 
Farmers' income will increase when the cost of production comes down and productivity improves.