No proposal for complete loan waiver for farmers: Sitharaman

New Delhi, Mar 23: There is no proposal of a complete loan waiver for farmers under consideration with the central government, Finance Minister Nirmala Sitharaman informed Parliament on Monday. However, she said, the government has taken several measures to strengthen the economic conditions of the farmers, including timely and adequate credit through Kisan Credit Card (KCC), wherein crop loan up to Rs 3 lakh is provided at subsidised interest rates under the Modified Interest Subvention Scheme (MISS), with additional incentives for timely repayment.

Besides, the government has enhanced collateral free short-term agricultural loans, including loans for allied activities, from Rs 1.60 lakh to Rs 2.00 lakh and ensuring adequate flow of credit from the banking system to the priority sectors of the economy, including agriculture, under Priority Sector Lending guidelines issued by the Reserve Bank of India (RBI), she said in a reply to the Lok Sabha.