Banks sanction over Rs 1 trillion concessional loans to KCC holders

The Finance Ministry said banks have sanctioned over Rs 1 trillion concessional loans to Kisan Credit Card (KCC) holders to help farmers meet financial requirements during the COVID-19 crisis.

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Finance Ministry | public banks | Kisan credit card

The Finance Ministry on Thursday said banks have sanctioned over Rs 1 lakh crore concessional loans to Kisan Credit Card (KCC) holders to help farmers meet financial requirements during the COVID-19 crisis.

As on August 17, 1.22 crore KCCs have been sanctioned with the credit limit of Rs 1,02,065 crore, and this will go a long way in reviving the rural economy and accelerating agricultural growth, the ministry said in a statement.

This reflects an increase of Rs 12,255 crore, over Rs 89,810 crore sanctioned to 1.1 crore KCC holders as on July 24.

In an effort to buffer the agricultural sector from the shock of COVID-19, it said, a special saturation drive is underway to provide concessional credit to farmers through Kisan Credit Card.

As part of the Rs 20.97 lakh crore Aatma Nirbhar Bharat Package, the government in May had announced the provision of concessional credit of Rs 2 lakh crore which is likely to benefit 2.5 crore farmers, including fishermen and dairy farmers.