AGRICULTURAL CREDIT SECTOR
Economy of the State is mainly dependent on agriculture as more than 65% of the total population is engaged in this sector. Credit is an essential sinew for the progress of economic development. In a developing economy like ours Agriculture Credit assumes greater significance on account of the fact that it is a critical input to support and sustain crop production.
Agricultural loans to farmers at 6%:
The State Government has implemented w.e.f. 01-04-2004 the scheme of providing Agricultural loans at the rate of 6%. The credit goes to the Government for having brought this scheme for the first time in the Country.
The Government has accorded sanction for charging interest at the rate of 6% on S.T. M.T and L.T. loans availed by the farmers. Accordingly the Co-op. Societies/Institutions have implemented the scheme. The Government reimbursed an average of 5.5% differential interest to Co-op. Societies.Under this scheme Government has released Rs.60.00 crores and Rs.80.00 crores during the years 2004-05 and 2005-06 respectively.Agricultural loans to farmers at 4% :
Government has implemented with effect from 01-04-2006 the scheme of providing Short Term, Medium Term and Long Term loans to farmers and Government will reimburse 7.5% interest subsidy on the loans issued to farmers through Credit Co-operative Societies. Under this scheme an amount of Rs 153.41 crores has been realesed by the Govt.
Interest subsidy on Agricultural Loans disbursed at 3 % :
The scheme of advancing agricultural and allied loans to the farmers at 3 % through Cooperative credit institutions has been implemented from 01-04-2008. The Government is providing interest subsidy at prescribed rate to the concerned institutions. An amount of Rs. 27700.00 lakhs has been earmarked to implement the scheme in the budget for 2010-11 and the entire amount released by Government has been released to 14,76,251 farmers through concerned cooperative institutions.
Agricultural loans to farmers at 1% :
Government has implemented with effect from 01-04-2011 the scheme of providing Short Term agricultural loans to farmers up to 3.00 lakhs and The Short term Agricultural loans which were not due on 31-03-2011 . The scheme of lending Medium and long term Agricultural loans up to Rs. 10.00 lakhs at 3 % is continued in this year also. Government has made budget provision of Rs.625.00 crores and released Rs.435.00 crores to implement the scheme.
An amount of Rs. 13100.00 lakhs has been released to 100281 SC beneficiaries under the SCP programme and Rs. 1094.00 lakhs has been relased to 77035 ST beneficiaries under TSP programme and 100 % progress achieved in utilizing the fund allotted fo SC/ST
Agricultural loans to farmers at 0% & 1%:
Government has implemented with effect from 01-04-2012 the scheme of providing Short Term Agricultural loans to farmers up to Rs. 1.00 lakhs at 0% interest rate and crop loans above Rs.1 lakh to Rs.3.00 lakhs are continued to be lend at 1%.The scheme of lending Medium and Long Term Agricultural loans up to Rs.10.00 lakhs at 3% is continued for the year 2012-13. Government has made budget provision of Rs.392.04 crores and released Rs 392.03 crores to implement the scheme
Plan for the year 2015-2016
It is proposed to disburse Rs 10500.00 crores of agricultural loans to 23.50 lakh farmers in the State @ 0% upto 3.00 lakhs through Cooperatives for the year 2015 –2016. Medium and Long term agricultural loans upto Rs.3.00 lakhs are being lent at 3%.
Disbursement of Loans :
(Rs in crores)
The funds involved by various institutions in the Short term agricultural loans disbursed through PACS is as follows :
Performance of Short Term, Medium Term and Long Term Credit Structure in the Karnataka
As on 31-3-2018, During the year 2017-18, the short term (ST), medium term (MT) and long term (LT) loans disbursed by the co-operative credit system in the State was Rs. 10,571.88 crores, Rs. 848.73 crores and Rs. 198.27 crores respectively, thereby achieving progress of 86.06% as against the annual target.
Performance of ST, MT and LT Credit Structure in the Karnataka, from 2015-16- to 2017-18
Recovery of loans
The comparative position of recovery of short, medium and long term loans under the cooperative credit system in the state for the years from 2015-16 to 2017-18 is presented in the following table.
Rs. in Crores
The Kisan Credit Card Scheme introduced in the year 1997 – 1998 aims at providing timely and adequate credit support to the farmers for their cultivation needs in a flexible and cost effective manner. As on 31.3.2018 since inception out of which 22,27,506 KCC cards has been distributed and 2203587 farmers are covered under Personnel accident insurance scheme.
Interest subsidy to Self help groups :-
The scheme of advancing loans at interest rate of 4% through primary agricultural credit societies to Self Help groups (SHGs) in Karnataka has been implemented from 01.04.2007. The differential rate of interest is being reimbursed as interest subsidy by the Government to the co-operative societies. Interest subsidy at the rate of 8.25% and 7.5% to PACS and DCC Banks respectively has been provided on loans disbursed during the year 2013-14. Budget allocation of Rs.6262.75lakhs has been provided for the year 2015-16 and the entire provision has been released as interest subsidy to the co-operative institutions. Rs.2089.50 lakhs loan has been disbursed to 75611 SHGs for the year 2016-17. In the year 2017-18, Women SHG groups have been disbursing loans at 0% up to Rs. 5 lakh during the year 2017-18 Rs. 1101.92 Crore of loan has been disbursed to 38772 SHG groups & Rs. 32.00 crore of interest subsidy has been released.Rs. in crores