More Credit Avenues Sought For Farmers

Provision of ATM cards to Kisan Credit Card (KCC) holders and waiver of stamp duty and registration fee on loan documents are among a slew of measures the agriculture ministry has asked the finance ministry to take to ensure easier access of bank credit to farmers.

It has also suggested that loans for tractors and other agricultural equipment should be advanced without any mortgage or collateral. Instead, like car loans, hypothecation of assets should be treated as sufficient security.

In a detailed communication to the finance ministry, Krishi Bhawan has pointed out that commercial banks have failed to achieve the target of 18 per cent lending to the agriculture sector.

 

The flow of finance needs to be stepped up to meet the 10th Plan