The government has directed the banks to take measures to ease the approval process to provide loans on time to farmers. Agriculture Minister Radha Mohan Singh has asked the banks to provide hassle-free loan facility by standardizing documents required and connecting it with Jhan Dhan, Aadhar and mobile banking.
The government has set an agricultural credit target for banks at Rs 9 lakh crore for the current fiscal, up from Rs 8.5 lakh crore in 2015-16. It is also providing short-term loan of up to Rs 3 lakh for a period of one year at a subsidized interest rate of 7% under its scheme. And additional subvention of 3% is given for those farmers who repay on time.
Besides, the digitalization process related to land records in most of the states has been completed so as to sanction loan expeditiously to the farmers.