Parliament Question: Approval of Loan Proposals

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 3646 ANSWERED ON MONDAY, AUGUST 10, 2026/ SHRAVANA 19, 1948 (SAKA) Approval of Loan Proposals †3646. SHRI OMPRAKASH BHUPALSINH ALIAS PAVAN RAJENIMBALKAR: Will the Minister of FINANCE be pleased to state: (a) whether it has come to the notice of the Government that the approval of crop loan proposals of farmers in nationalised banks takes longer time from regional/higher offices, if so, the details thereof; (b) whether the Government proposes to delegate powers to Branch Managers working at the branch level in nationalised banks to sanction crop loans to eligible farmers up to a prescribed limit, if so, the details thereof; (c) if not, the reasons therefor; and (d) the steps being taken or proposed to be taken by the Government to provide crop loans to farmers in a time-bound and simplified manner? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) to (d) Major Public Sector Banks have informed that financial powers for sanction of crop loan has already been delegated to Branches/Agri Processing Cells/Field Staff/Specified Processing Cells etc. depending upon the delegated financial powers in accordance with their respective Board Approved Policy. Eligible proposals for crop loans within delegated limits are sanctioned in a time bound manner at the Branch/Agri Processing Cells/Field Staff/Specified Processing Cells level by major PSBs, thereby minimising delays. Moreover, the Government has taken various initiatives to provide crop loans to farmers in a time-bound and simplified manner, which, inter-alia, includes: - i. The Reserve Bank of India (RBI) has issued Directions dated 19.06.2026 on Kisan Credit Card Scheme, the scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers. ii. RBI has further advised Scheduled Commercial Banks (SCBs) to deal with loan proposals within appropriate timelines and establish a monitoring mechanism for reviewing the applications pending beyond the specified period. iii. Delivery of agriculture credit through digital channels such as Kisan Rin Portal (KRP), e-KCC, JanSamarth portal, etc. for faster and transparent loan processing has also been put in place by banks. *****