(a) whether the Government is aware that the farmers avail concessional agricultural loan
at 4 per cent and re-invest the same at 8.5 per csnt in the banks under Fixed Deposit
Scheme (FDi);
(b) if so, the details thereof; and
(c) the steps taken/proposed to be taken to check misuse of agricultural loans by the
farmers?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c): The Interest Subvention Scheme is being implemented by the Government of
India since 2006-07 to make short-term crop loans upto Rs. 3 lakh for a period of
one year available to farmers at the interest rate of 7 percent per annum. The
Government of India has since 2009-10 been providing additional interest subvention
to prompt payees farmers, i.e., those who repay their loan in time. The additional
subvention was 1% in 2009-10 and 2% in 2010-11. This is being increased to 3% in
2011-12.
During the course of statutory inspections of Central Coop. Banks and the
Regional Rural Banks by the National Bank for Agriculture and Rural Development
(NABARD), no instances of re-investment of concessional agricultural loans in
the Banks under the Fixed Deposit Scheme has been noticed.