Public sector banks to disburse Rs.6 lakh crore farm loans: Chidambaram

The Finance Minister said the interest rate on farm loan would come down to four percent to farmers who pay their dues on time.

Published: 25th August 2012 11:54 PM  |   Last Updated: 25th August 2012 11:55 PM   |  A+A-


Government-owned banks have a target to disburse agriculturale loan to the tune of Rs.600,000 crore during the current fiscal - Rs.25,000 crore higher than what was set earlier - said Union Finance Minister P.Chidambaram Saturday.

Inaugurating a new Rural Training Centre (RTC) jointly set up by Indian Bank, Indian Overseas Bank (IOB) and National Bank for Agriculture and Rural Development (NABARD) here, Chidambaram said: "In 2011-12, the agriculture loan target was Rs.450,000 crore but the achievement was Rs.475,000 crore. In 2012-13, the target was Rs.575,000 crore."

Karaikudi in Tamil Nadu is around 420 km from state capital Chennai.

Referring to the meeting he had with the chairmen of public sector banks, Chidambaram said the bankers told him that the agricultural loan disbursement will be Rs.600,000 crore this fiscal.

He said the interest rate on farm loan would come down to four percent to farmers who pay their dues on time.

Chidambaram urged the farmers to look at non-farming activities to increase their income levels as they cannot depend on agriculture for their earnings throughout the year owing to uncertain rains.

IOB chairman and managing director M. Narendra said the government banks have decided to increase their lending to agriculture sector in Tamil Nadu by around 41 percent to Rs.51,000 crore.

According to Narendra, of the total disbursements, nearly 60 percent will go for crop loans while the banks would also focus on investment credit.

He said public sector banks would disburse over Rs.2,000 crore in Chidambaram's own Sivaganga constituency.

Narendra said Sivaganga has 184 bank branches.

Last fiscal, banks disbursed Rs.1,284 crore loan as against a target of around Rs.1,125 crore and for the current fiscal the target is around Rs.2,065 crore.

Stay up to date on all the latest Business news with The New Indian Express App. Download now


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp