Question : Loans against Kisan Credit Cards

(a) whether the Government proposes to increase the loan limit of Kisan Credit Card (KCC);

(b) if so, the time by which it is likely to be done, the details thereof;

(c) if not, whether in view of inflation, the loan limit of KCC should not be increased in the interest of the farmers, the details thereof;

(d) the details of the funds allocated to the States including Haryana during the last three years, State-wise;

(e) whether loan has been given under KCC during the said period; and

(f) if so, the details thereof, State-wise?

MINISTER OF AGRICULTURE AND FARMERS WELFARE

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(a) to (c): The credit limit/loan amount under Kisan Credit Card (KCC) is fixed by Banks as per guidelines prescribed in the Master Circular dated July 14, 2018 issued by Reserve Bank of India (RBI). The Short term credit limit under KCC for the first year is determined based on Scale of Finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest/ household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance and/or accident insurance including Personal Accidental Insurance Scheme (PAIS), health insurance & assets insurance. The limit for second and subsequent years (3rd, 4th and 5th year) is arrived based on first year limit for crop cultivation purpose plus 10% of the limit towards cost escalation/increase in scale of finance and estimated term loan component for the tenure of KCC i.e., five years. The short term loan limit arrived for the 5th year plus the estimated long term, loan requirement will be the Maximum Permissible Limit (MPL) and is to be treated as the Kisan Credit Card limit.

Under the KCC Scheme, a flexible limit of Rs.10,000 to Rs.50,000 has been provided to marginal farmers (as Flexi KCC) based on the land holding and crops grown including post-harvest warehouse storage related credit needs and other farm expenses, consumption needs, etc., plus small term loan investments without relating it to the value of land.

(d) to (f): Loans have been provided under KCC during for the last three years including Haryana. The State-wise details of allocation/disbursement of Agriculture credit for the last three years is at Annexure.