**Executive Summary**
This document is a response to Starred Question No. 47 in the Lok Sabha, concerning outstanding farm debt in India. The question was to be answered on February 3rd, 2026. The response details the average outstanding loan per agricultural household, steps taken to promote institutional credit, and government schemes to address farm indebtedness and support farmers.
**Key Points / Main Content**
* **Average Outstanding Farm Debt:**
* As of the Situation Assessment Survey (SAS) conducted in 2019, the average outstanding loan per agricultural household across the country is Rs. 74,121.
* **Government Initiatives to Promote Institutional Credit:**
* Annual fixing of ground-level agriculture credit targets for banks.
* Priority sector lending targets for banks.
* Access to affordable credit through Kisan Credit Card (KCC) / Modified Interest Subvention Scheme (MISS).
* **Long-Term Measures to Empower Farmers:**
* Direct cash benefit schemes (PM Kisan).
* Crop insurance (PMFBY).
* Subsidy and grant-based programs (Krishonnati Yojna, RKVY).
* **Modified Interest Subvention Scheme (MISS):**
* Provides concessional interest rates on short-term agricultural loans through KCC.
* Farmers receive KCC loans at a subsidized interest rate of 7%.
* Financial institutions receive an upfront interest subvention (IS) of 1.5%.
* Farmers who promptly repay loans receive a 3% Prompt Repayment Incentive (PRI), reducing the effective interest rate to 4% per annum.
* **Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme:**
* Provides eligible farmer families with income support of ₹6,000 per year in three equal installments through Direct Benefit Transfer (DBT).
* The scheme reduces reliance on informal credit and complements KCC.
* The government has disbursed over Rs 4.09 lakh Cr through 21 installments since inception; the 21st installment was released on 19th November, 2025, benefiting more than 9.34 crore farmers.
**Impact Analysis**
**Farmers:**
* **Impact:** Farmers, especially small and marginal farmers, benefit from increased access to institutional credit at subsidized interest rates, income support through PM-KISAN, and reduced dependence on informal lending. The schemes aim to reduce financial stress and improve their economic well-being.
* **Action Required:** Farmers should apply for and utilize the benefits of the KCC, MISS, and PM-KISAN schemes to access credit, reduce their debt burden, and improve their income.
**Financial Institutions:**
* **Impact:** Financial institutions are incentivized to provide agricultural loans through interest subventions and priority sector lending targets.
* **Action Required:** Financial institutions need to facilitate the implementation of KCC and MISS, ensuring efficient disbursement of loans and proper accounting of interest subventions and incentives. They should also work with the government to achieve the agricultural credit targets.
Key Entities Referenced
Kisan Credit Card (KCC): A scheme to provide farmers with access to affordable credit for their agricultural needs.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): A scheme providing income support to eligible farmer families through direct cash transfers.
Modified Interest Subvention Scheme (MISS): A Central Sector Scheme providing concessional interest rates on short-term agricultural loans obtained through Kisan Credit Cards (KCC).
Ministry of Agriculture and Farmers Welfare: The primary ministry responsible for agricultural policies and programs.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO. 47
TO BE ANSWERED ON THE 03RD FEBRUARY, 2026
OUTSTANDING FARM DEBT
*47. SHRI E. T. MOHAMMED BASHEER:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष और िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the details of the total outstanding farm debt across the country along with the plans
to provide debt relief to marginalized farmers;
(b) the steps being taken to regulate informal lending and expand access to low-interest
institutional credit for small and marginal farmers; and
(c) the manner in which the Government is addressing regional disparities in farm
indebtedness and ensuring targeted relief for the most vulnerable farming
communities?
ANSWER
MINISTER OF AGRICULTURE AND FARMERS WELFARE
कृ िष और िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHOUHAN)
(a) to (c): A statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PART (a) to (c) OF LOK SABHA
STARRED QUESTION NO. 47 DUE FOR ANSWER ON 03RD FEBRUARY, 2026
REGARDING OUTSTANDING FARM DEBT.
(a) to (c): As per Situation Assessment Survey (SAS) of Agricultural Households
conducted by Ministry of Statistics and Programme Implementation (MoSPI) during NSS
77th round (January, 2019 – December, 2019) in the rural areas of the country, the
average amount of outstanding loan per agricultural household across the country is Rs.
74,121.
The Government has taken various steps to promote institutional credit among rural
households which inter-alia include annual fixing of ground level agriculture credit target
to banks, Priority Sector lending targets to banks, access to affordable credit through Kisan
Credit Card (KCC)/ Modified Interest Subvention Scheme (MISS) etc. Further, the
Government has also implemented structured long-term measures to economically
empower farmers. These initiatives include direct cash benefit schemes (PM Kisan), crop
insurance (PMFBY), subsidy and grant-based programs (Krishonnati Yojna, RKVY) etc.
To improve credit access and reduce rural distress over the long term, the
government is implementing a 100% centrally funded Central Sector Scheme known as
the Modified lnterest Subvention Scheme (MISS) across various States and UTs in pan
lndia. 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. Under this scheme,
farmers receive KCC loans at a subsidized interest rate of 7%. To facilitate this, an up front
interest subvention (IS) of 1.5% is provided to financial institutions. Additionally, farmers
who repay their loans promptly receive a 3% Prompt Repayment Incentive (PRI),
effectively reducing the interest rate to 4% per annum.
Further, to provide assured income support and reduce financial stress among
small and marginal farmers, the Government is implementing the Pradhan Mantri Kisan
Samman Nidhi (PM-KISAN) Scheme, a 100% Central Sector Scheme. Under the scheme,
eligible farmer families receive income support of ₹6,000 per year in three equal
instalments through Direct Benefit Transfer (DBT). The scheme provides timely liquidity
for agricultural and household needs, helps reduce dependence on informal credit, and
complements institutional credit initiatives such as the Kisan Credit Card (KCC). The
Government of India has disbursed over Rs 4.09 lakh Cr. through 21 installments since
inception. 21st installment of PM-Kisan scheme was released on 19th November, 2025 and
more than 9.34 crore farmers received the benefits.
*****