Latest news with #MISS
Time of India
5 days ago
- Business
- Time of India
Fewer borrowers, bigger burden: Punjab's Kisan Credit Card debt rose Rs 2cr per day in 4 years, now Rs 57,536 cr
1 2 Chandigarh: Despite being the agricultural heartland of India, Punjab continues to grapple with a mounting debt burden under the Kisan Credit Card (KCC) scheme —a trend that highlights deepening financial stress in the state's farm economy. This rise in outstanding loans — which was Rs 2 crore every day — has occurred despite a drop in the number of active KCC accounts, raising questions over repayment capacity and increasing dependency on credit among farmers. According to data presented in the Lok Sabha by the Union ministry of finance in response to a query by BJP MP Rajesh Naranbhai Chudasama, Punjab's outstanding loan amount under KCC scheme rose from Rs 54,526 crore in March 2021 to Rs 57,536 crore in March 2025 — an increase of Rs 3,010 crore (5.52%). Give than there were nearly 1,500 days in this time period, the credit burden rose nearly Rs 2 crore every day. During the same period, the number of operative KCCs declined from 2.244 lakh to 2.168 lakh, indicating a high per-card loan exposure. The KCC scheme, launched in 1998, was designed to provide timely and hassle-free credit to farmers for activities such as crop production, post-harvest expenses, and working capital for agricultural assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold 2021 Cars Now Almost Free - Prices May Surprise You Unsold Cars | Search Ads Learn More Undo It is implemented through commercial banks, cooperative banks, and regional rural banks. The Modified Interest Subvention Scheme (MISS) offers an interest subvention of 1.5% on short-term working capital loans up to Rs 3 lakh at 7% interest, with an additional 3% incentive for prompt repayment. While Punjab's loan growth is modest in percentage terms, the increasing liability despite fewer cardholders underlines a worrying trend. In Haryana, loans grew Rs10,055cr In comparison, Haryana has seen a more pronounced rise in both card issuance and debt levels. The number of active KCCs in Haryana grew from 2.264 lakh in 2021 to 2.4 lakh in 2025, while outstanding loans surged by Rs 10,055 crore—from Rs 45,356 crore to Rs 55,411 crore, a 22.2% rise. 44.4% rise in Himachal Pradesh In Himachal Pradesh, the rise has been even sharper in percentage terms. The hill state's outstanding KCC loan increased from Rs 6,626 crore in 2021 to Rs 9,572 crore in 2025, marking a 44.5% increase. The number of KCC holders also went up from 39,200 to 51,000, reflecting improved credit access but also a growing credit footprint. KCC loans now at Rs 10.2L cr in India Nationally, the outstanding loan under the KCC scheme has ballooned to Rs 10.2 lakh crore as of March 2025, up from Rs 7.53 lakh crore in 2021. The govt has reiterated that to support timely repayments and reduce defaults, farmers are provided incentives for prompt repayment, alongside subsidised interest rates through MISS.
Mint
6 days ago
- Business
- Mint
Current agri loans over ₹28 lakh crore, but no waiver plan: Govt
The Centre has informed that agricultural loans worth over ₹ 28.5 lakh crore are outstanding but ruled out any plans for a waiver, minister of state in the ministry of finance Pankaj Chaudhary said in response to a question in Lok Sabha on Monday. Responding to Parliamentary questions by Lok Sabha MPs Supriya Sule (Nationalist Congress Party – Sharadchandra Pawar, Maharashtra), Hanuman Beniwal (Rashtriya Loktantrik Party, Rajasthan) and others, the Ministry of Finance informed Monday that outstanding agricultural loans stood at ₹ 28,50,779.43 crore as of March 31, 2025. These are due from 1,762.96 lakh accounts. 'No proposal to waive off the outstanding agricultural loans, is under consideration with Union Government,' the government said. Meanwhile, it is important to note that farmer loans are different from other categories of lending such as personal loans but lately the stance of cooperative banks to insist on credit score for approval of loans has rattled farmers no end. Read this Livemint for details on this. However, it added that several measures have been taken 'to provide relief and to improve the economic conditions of the farmers which inter-alia includes timely and adequate credit through Kisan Credit Card (KCC) under which crop loan up to ₹ 3 lakh is provided at subsidized interest rates under the Modified Interest Subvention Scheme (MISS) with additional incentives for timely repayment, fixation of progressively increased agricultural credit target, issuance of revised Priority Sector Lending guidelines to ensure improved credit flow to the agricultural sector etc.' The top five states in terms of outstanding agricultural loans are Tamil Nadu: ₹ 4,03,367 crore; Andhra Pradesh: ₹ 3,08,716 crore; Maharashtra: ₹ 2,60,799 crore; Uttar Pradesh: ₹ 2,28,560 crore; Karnataka: ₹ 2,22,301 crore. State Loans ( ₹ crore) Rajasthan 1,87,322 MP 1,62,385 Kerala 1,52,198 Telangana 1,44,346 Gujarat 1,44,330 Punjab 1,04,353 (Source: Other states with dues in excess of ₹ 1 lakh crore are Rajasthan: ₹ 1,87,322 crore; Madhya Pradesh: ₹ 1,62,385 crore; Kerala: ₹ 1,52,198 crore; Telangana: ₹ 1,44,346 crore; Gujarat: ₹ 1,44,330 crore; Punjab: ₹ 1,04,353 crore. Apart from Sule and Beniwal, the questions were put up by NCP-SP MPs from Maharashtra: Bhaskar Murlidhar Bhagare, Nilesh Dnyandev Lanke, Mohite Patil Dhairyasheel Rajsinh, Dr Amol Ramsing Kolhe, and Bajrang Manohar Sonwane, Shiv Sena (Uddhav Balasaheb Thackrey) MP from Maharashtra Sanjay Dina Patil, and Congress MP, Prof Varsha Eknath Gaikwad, also from Maharashtra. The MPs had also asked 'whether there is any correlation found between outstanding agricultural loans and incidence of farmer suicides in states like Maharashtra and if so, the data available with the Government on such cases during the last five years.' The government said that the National Crime Records Bureau (NCRB) publication 'Accidental Deaths and Suicides in India' is available till the year 2022 but that it does not specify separate reasons for farmer suicides. The MPs had also asked 'whether any specific categories of farmers marginal, small, tenant, SC/ST are more burdened with outstanding loans and if so, the details thereof' to which the government said that 'NABARD All India Rural Financial Inclusion Survey (NAFIS) for the period of 2021-2022 indicates a generally positive relationship between landholding size and household indebtedness, with the proportion of indebted households increasing as land size increases, up to 1 hectare. Beyond this threshold, a marginal decline in the incidence of indebtedness is observed among households with larger landholdings.' Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Indian Express
7 days ago
- Business
- Indian Express
Outstanding agri loans cross Rs 28 lakh crore, Centre says no waiver plan
The Centre has informed that agricultural loans worth over ₹28.5 lakh crore are outstanding — but ruled out any plans for a waiver. Responding to Parliamentary questions by Lok Sabha MPs Supriya Sule (Nationalist Congress Party – Sharadchandra Pawar, Maharashtra), Hanuman Beniwal (Rashtriya Loktantrik Party, Rajasthan) and others, the Ministry of Finance informed Monday that outstanding agricultural loans stood at Rs 28,50,779.43 crore as of March 31, 2025. These are due from 1,762.96 lakh accounts. 'No proposal to waive off the outstanding agricultural loans, is under consideration with Union Government,' the government said. However, it added that several measures have been taken 'to provide relief and to improve the economic conditions of the farmers which inter-alia includes timely and adequate credit through Kisan Credit Card (KCC) under which crop loan up to Rs 3 lakh is provided at subsidized interest rates under the Modified Interest Subvention Scheme (MISS) with additional incentives for timely repayment, fixation of progressively increased agricultural credit target, issuance of revised Priority Sector Lending guidelines to ensure improved credit flow to the agricultural sector etc.' The top five states in terms of outstanding agricultural loans are Tamil Nadu: Rs 4,03,367 crore; Andhra Pradesh: Rs 3,08,716 crore; Maharashtra: Rs 2,60,799 crore; Uttar Pradesh: Rs 2,28,560 crore; Karnataka: Rs 2,22,301 crore. Other states with dues in excess of Rs 1 lakh crore are Rajasthan: Rs 1,87,322 crore; Madhya Pradesh: Rs 1,62,385 crore; Kerala: Rs 1,52,198 crore; Telangana: Rs 1,44,346 crore; Gujarat: Rs 1,44,330 crore; Punjab: Rs 1,04,353 crore. Apart from Sule and Beniwal, the questions were put up by NCP-SP MPs from Maharashtra: Bhaskar Murlidhar Bhagare, Nilesh Dnyandev Lanke, Mohite Patil Dhairyasheel Rajsinh, Dr Amol Ramsing Kolhe, and Bajrang Manohar Sonwane, Shiv Sena (Uddhav Balasaheb Thackrey) MP from Maharashtra Sanjay Dina Patil, and Congress MP, Prof Varsha Eknath Gaikwad, also from Maharashtra. The MPs had also asked 'whether there is any correlation found between outstanding agricultural loans and incidence of farmer suicides in states like Maharashtra and if so, the data available with the Government on such cases during the last five years.' The government said that the National Crime Records Bureau (NCRB) publication 'Accidental Deaths and Suicides in India' is available till the year 2022 but that it does not specify separate reasons for farmer suicides. The MPs had also asked 'whether any specific categories of farmers marginal, small, tenant, SC/ST are more burdened with outstanding loans and if so, the details thereof' to which the government said that 'NABARD All India Rural Financial Inclusion Survey (NAFIS) for the period of 2021-2022 indicates a generally positive relationship between landholding size and household indebtedness, with the proportion of indebted households increasing as land size increases, up to 1 hectare. Beyond this threshold, a marginal decline in the incidence of indebtedness is observed among households with larger landholdings.' Beniwal said, 'The BJP government, which falsely claims to protect farmers' interests, has once again refused in the Lok Sabha to waive the outstanding agricultural loans of farmers in Rajasthan and other states across the country.' 'The continuous increase in farmers' loans exposes the falsehood of all those claims by the government about the upliftment and welfare of farmers. The details of outstanding agricultural loans in different states of the country reveal a grim situation. Today, the government is saying that it is trying to provide relief to farmers by issuing KCC. Is merely providing loans equivalent to giving relief to farmers?' he said, asking Prime Minister Narendra Modi, 'to formulate a scheme to completely waive the agricultural loans of farmers in Rajasthan and across the country to strengthen the economic condition of the nation's farmers.' Sule and some other Maha Vikas Aghadi MPs also met Union Agriculture Minister Shivraj Singh Chouhan on Tuesday where they apprised him of various issues and also complained about Maharashtra Agriculture minister Manikrao Kokate, recently caught playing rummy in the Assembly, over his 'anti-farmer' stance and demanded his resignation and appointment of a 'sensitive Agriculture Minister who understands the issues of farmers.'
India Gazette
29-05-2025
- Business
- India Gazette
"Historic day as scientists step out of labs to share research directly with farmers", says Agriculture Minister Chouhan
Puri (Odisha) [India], May 29 (ANI): Union Agriculture Minister Shivraj Singh Chouhan on Thursday hailed scientists stepping out of labs to share new agricultural research directly with farmers, emphasising practical implementation. The government has also extended the Modified Interest Subvention Scheme to provide financial support to farmers, marking a significant step toward boosting agricultural productivity and farmer welfare. Speaking to media persons, Chouhan said, 'It is a historic day for the country as the scientists leaving their labs are going to farmers to inform them about new research and agricultural developments. Knowledge will not remain in labs but will be implemented on the ground.' 'Farmers, the Central Agriculture Ministry, the state department, and agricultural universities work together to ensure production the Centre and the Cabinet extended the Modified Interest Subvention Scheme in the interest of farmers,' he told reporters. Earlier, on Wednesday, the Union Cabinet approved the continuation of the interest subvention component under the Modified Interest Subvention Scheme (MISS) for farmers for the financial year 2025-26 and approved the required fund arrangements. It is a Central Sector Scheme that ensures the availability of short-term credit to farmers at an affordable interest rate through the Kisan Credit Card (KCC). Under the Scheme, farmers received short-term loans of up to Rs 3 lakh through Kisan Credit Cards (KCC) at a subsidised interest rate of 7 per cent, with a 1.5 per cent interest subvention provided to eligible lending institutions. Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3 per cent as a Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4 per cent. Overall agricultural credit flow also rose from Rs 7.3 lakh crore in 2013-14 to Rs 25.49 lakh crore in 2023-24. 'The Cabinet's decision reinforces the Government's unwavering commitment to doubling farmers' income, strengthening the rural credit ecosystem, and boosting agricultural growth through timely and affordable credit access,' the statement added. (ANI)
New Indian Express
29-05-2025
- Business
- New Indian Express
Increased MSP for Kharif crops
NEW DELHI: The Union Cabinet on Wednesday approved a hike in the Minimum Support Price (MSP) for the 2025-26 Kharif season and extended the interest subvention scheme for farmers. It also approved two multi-tracking railway projects in Maharashtra and Madhya Pradesh, as well as a four-lane highway project in Andhra Pradesh. The Cabinet approved a hike in paddy MSP by three percent or Rs 69 per quintal to Rs 2,369 for the 2025-26 Kharif season and up to nine percent rise in rates of pulses and oilseeds, according to Union Minister Ashwini Vaishnaw. The cost to the exchequer of the MSP decision is Rs 2,07,000 crore, and continuation of the subvention scheme will cost Rs 15,642 crore. The announcement comes amid the southwest monsoon reaching earlier than usual, giving a boost to the sowing of kharif crops, which contribute over 50 per cent of India's total annual foodgrain production. Under the Modified Interest Subvention Scheme (MISS) for 2025-26, farmers will continue to receive short-term credit at an affordable rate through the Kisan Credit Card (KCC). The continuation of the scheme will cost exchequer Rs 15,640 crore, the Minister said. Under MISS, farmers get short-term loans of up to Rs 3 lakh through KCC at a subsidised interest rate of 7 percent, with 1.5 percent interest subvention provided to eligible lending institutions. Additionally, farmers who repay loans promptly are eligible for an incentive of up to 3 percent as the Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4 percent.
