THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL):
(a) to (c) Finance Minister has mentioned in his Budget Speech this year that the total
credit flow to agriculture through institutional channels is expected to increase to
Rs. 64,000 crores during the year 2001-2002. No ratio has been prescribed for providing
loans to small, medium and big farmers. No separate guidelines have also been issued in
this regard and banks and expected to achieve this level of credit flow under the existing
guidelines of Reserve Bank of India (RBI) and National Bank for Agriculture and Rural
Development (NABARD).
(d) RBI has been taking various steps to strengthen the flow of credit to small and
marginal farmers by making certain relaxations in regard to the margin money requirements,
security norms, etc. These include non-insistence by banks on margin money for crop loans/
terms loans granted to farmers upto Rs. 10,000/-, non-insistence by banks upon collateral
security/third party guarantee for crop loans upto Rs. 10,000/- discretion of Danks in
matters relating to margin/security for loans above Rs. 10,000/-, insistence on payment
of interest only at the time of repayment of loan/instalments fixed, aot to compound
interest on current dues not falling due n respect of term loans, total interest debited
not to exceed the principal amount in respect of short-term advances, etc.