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Date: 2025-12-16 Category: Not Applicable State: Union Government Country: India

Parliament Question: Agricultural Loan for Small and Marginal Farmers

Issued by AGRICULTURE AND FARMERS WELFARE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document provides the answer to Unstarred Question No. 2574 to be answered on December 16th, 2025, regarding agricultural loans for small and marginal farmers. The document outlines the government's initiatives to provide concessional interest rates and financial support to farmers, including the Modified Interest Subvention Scheme (MISS) and the Agriculture Infrastructure Fund (AIF). It also details the growth in credit flow to the agricultural sector and the portion received by small and marginal farmers. **Key Points / Main Content** * **Data on Small and Marginal Farmers:** * The central government does not maintain data on the percentage of small and marginal farmers. * However, the latest Agriculture Census 2015-16 indicates that small and marginal operational holdings constitute approximately 86% of the total operational holdings in the country. * **Modified Interest Subvention Scheme (MISS):** * The government implements a 100% centrally funded scheme, MISS, across India. * MISS aims to provide concessional interest rates on short-term agricultural loans via Kisan Credit Cards (KCC). * The number of operative KCC accounts reached 7.72 crore in 2024-25. * **Growth in Credit Flow:** * Total credit flow to the agricultural sector has increased nearly four times. * The credit increased from Rs. 7.3 lakh crore in 2013-14 to Rs. 28.69 lakh crore in 2024-25. * Credit disbursed to Small and Marginal Farmers (SMFs) has grown to Rs. 14.35 lakh crore during this period. * Small and marginal farmers receive approximately 50% of the total agricultural credit. * **Additional Support Schemes:** * The Agriculture Infrastructure Fund (AIF) provides institutional credit to farmers. * Pradhan Mantri Fasal Bima Yojana (PMFBY) provides financial support for crop loss/damage. * These schemes reduce the cost of borrowing, encourage timely repayment, and promote better credit discipline. **Impact Analysis** **Stakeholder: Small and Marginal Farmers** * **Impact:** Beneficiaries of government schemes providing access to credit and financial support. * **Action Required:** Utilize Kisan Credit Cards (KCC) and other available schemes to access loans and financial assistance. **Stakeholder: Ministry of Agriculture and Farmers Welfare** * **Impact:** Responsible for implementing and overseeing the MISS scheme and monitoring agricultural credit disbursement. * **Action Required:** Continue to implement and improve the MISS scheme, ensure accurate data collection and reporting, and promote awareness of available schemes among farmers. **Stakeholder: Department of Financial Services, Ministry of Finance** * **Impact:** Involved in monitoring the credit flow to the agriculture sector. * **Action Required:** Continue to monitor credit disbursement to the agriculture sector and its impact on small and marginal farmers.

Key Entities Referenced

Ministry of Agriculture and Farmers Welfare: Primary government body responsible for agriculture and farmers' welfare in India, mentioned in the context of data collection and administration of schemes. Modified Interest Subvention Scheme (MISS): A central sector scheme providing concessional interest rates on short-term agricultural loans, accessible through Kisan Credit Cards (KCC) across India. Kisan Credit Cards (KCC): A mechanism for farmers to obtain short-term agricultural loans, playing a central role in the MISS scheme's implementation. Pradhan Mantri Fasal Bima Yojana (PMFBY): Scheme providing financial support to farmers suffering crop loss/damage. Agriculture Infrastructure Fund (AIF): Fund that also provides institutional credit to farmers.
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O.I.H. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 2574 TO BE ANSWERED ON THE 16TH DECEMBER, 2025 AGRICULTURAL LOAN FOR SMALL AND MARGINAL FARMERS 2574. SHRI SANATAN PANDEY: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state: (a) the percentage of small and marginal farmers among the total farmers in the country; (b) whether it is a fact that less than 30 per cent of the total agricultural loan is being given to small and marginal farmers; (c) if so, the details thereof including rural farmers; and (d) if not, the annual percentage of loan given to the said category of farmers? ANSWER THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR) (a): The data on percentage of small and marginal farmers among the total farmers is not maintained Centrally. However, as per latest Agriculture Census 2015-16 conducted by Ministry of Agriculture and Farmers Welfare, small and marginal operational holdings constitute about 86 per cent of the total operational holdings in the country. (b) to (d): The government is implementing a 100% centrally funded Central Sector Scheme known as the Modified Interest Subvention Scheme (MISS) across various States and UTs in pan India. This scheme aims to provide concessional interest rates on short-term agricultural loans obtained by farmers through Kisan Credit Cards (KCC) for their working capital requirements. Due to KCC-MISS scheme access to easy and affordable credit has increased significantly to farmers to meet their operational needs. The number of operative KCC accounts has reached to 7.72 crore in 2024-25, which has contributed to an increase in credit extended amount from Rs.4.26 lakh crore in 2013-14 to Rs. 10.20 lakh crore in 2024- 25. As per Department of Financial Services, Ministry of Finance, the total credit flow to the agriculture sector has nearly grown four times rising from Rs. 7.3 lakh crore in 2013-14 to Rs. 28.69 lakh crore in 2024-25. Out of which, Credit disbursed to small and Marginal Farmers (SMFs) has grown to Rs. 14.35 lakh crore during this period. This indicates that small and marginal farmers receive about 50% of the total agricultural credit. Besides KCC-MISS, Agriculture Infrastructure Fund (AIF) also provide institutional credit to farmers. Pradhan Mantri Fasal Bima Yojana (PMFBY) provides financial support to farmers suffering crop loss/damage arising out of unforeseen events and ensure flow of credit to the agriculture sector. By offering loans/financial support, these schemes help reduce the cost of borrowing, encourage timely repayment, and promote better credit discipline. ****

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