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NABARD To Extend Rs.30,000 Cr Refinance Support; Concessional Credit For Small Farmers: FM

Addressing a briefing on the second tranche of the economic package, Finance Minister Nirmala Sitharaman announced measures for the welfare of the farmers.

Written By
Akhil Oka
Nirmala Sitharaman

Addressing a press briefing on the second tranche of the economic package on Thursday, Union Finance Minister Nirmala Sitharaman announced two measures for the welfare of small farmers. Sitharaman declared that the NABARD shall extend additional refinance support of Rs.30,000 crore for crop loan requirement of rural cooperative banks and Regional Rural Banks. This is over and above the Rs.90,000 crore to be provided by the NABARD through the normal refinance route during 2020. This shall benefit 3 crore small and marginal farmers and help meet post-harvest and current Kharif requirements in May and June. 

Furthermore, she revealed that a special drive would be undertaken to provide concessional credit to PM Kisan Yojana beneficiaries through the Kisan Credit Cards. The fishermen and animal husbandry farmers shall also be included in this drive. This will enable farmers to gain access to institutional credit at a concessional interest rate. 2.5 crore farmers stand to benefit from the credit flow of Rs.2 lakh crore. 

Read: Centre Announces 9 Steps To Benefit Migrants, Farmers, Vendors In Second Economic Tranche

63 lakh loans sanctioned from March 1 to April 30

During the briefing, the Finance Minister also informed that 3 crore farmers with agricultural loans of Rs.4.22 crore had availed the benefit of 3 months loan moratorium after the commencement of the COVID-19 crisis. The interest subvention and prompt repayment incentive on crop loans due on March 1 have been extended by May 31, 2020. Moreover, 25 lakh Kisan Credit Cards have been sanctioned with a loan limit of Rs.25,000 crore.

Read: Priyanka Gandhi Writes To CM Yogi; Advises Measures For Farmers' Welfare, Small Businesses

The Union Finance Minister noted that 63 lakh loans worth Rs.86,600 have been sanctioned in agricultural areas between March 1 to April 30. She mentioned that NABARD had refinanced the cooperative banks and regional rural banks to the tune of Rs.29,500 crore. The state governments have been provided Rs.4,200 crore under the Rural Infrastructure Development Fund during March 2020. Additionally, a working capital limit of Rs.6,700 crore has been sanctioned to the state government entities for the procurement of agricultural produce since March 2020.

Read: Congress' Digvijaya Singh Shoots Unspecified Allegation On Flawed Premise In Covid Package

Read: Coronavirus Live Updates: Cases At 78,003 Ahead Of FM Sitharaman's 2nd Briefing At 4

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