Over Rs 4 lakh crore loan disbursed to 3 crore farmers under PM-KISAN, says FM

Finance Minister Nirmala Sitharaman on Thursday said 3 crore farmers availed agricultural loan of Rs 4.22 lakh crore under PM-KISAN during the coronavirus-led nationwide lockdown. These farmers availed the benefit of the 3-month loan moratorium, Sitharaman said while addressing her second tranche of economic package which focuses on migrant workers, street vendors, small traders, the self-employed and small farmers.

"Close to 3 crore marginal farmers had received loans worth Rs 4 lakh crore at low rates. They were also given a moratorium by the RBI," says Sitharaman.

Meanwhile, interest subvention and prompt repayment incentive on crop loans due from March 1 has been extended to May 31, says FM Sitharaman.

Direct Support to #Farmers & Rural Economy provided post #COVID19 as part of #AatmaNirbharBharatPackage : Finance Minister @nsitharaman pic.twitter.com/OTfY7MbBP2

- PIB India #StayHome #StaySafe (@PIB_India) May 14, 2020

She said that 25 lakh new Kisan credit cards were sanctioned with a total loan limit of Rs 25,000 crore.

Liquidity support for farmers and the rural economy has been happening even during the last two months, FM said. Enumerating the measures taken by the government so far, she said that 63 lakh loans worth Rs 86,600 crore have been approved in the agriculture sector between 1st March and 30th April.

She said the NABARD has provided refinancing facility of Rs 29,500 crore to cooperative banks and regional rural banks in March 2020. Besides, 63 lakh loans worth Rs 86,600 crore have been approved in the agriculture sector between 1st March and 30th April. The government has provided support of Rs 4,200 crore under rural infrastructure fund to states during March for rural infrastructure development. Additionally, the working capital limit of Rs 6700 crore sanctioned for procurement of agriculture produce to state government entities since March, FM said.

Also Read: Free food grain supply to all migrants for next 2 months, says FM