Agricultural credit flow by cooperative and public sector banks exceeded the target by 13 per cent in 2009-10 financial year.
"The flow of credit to the agriculture sector increased significantly and banks have surpassed the target by extending Rs 3,67,000 crore (Rs 3,670 billion) worth of loan to farmers," an agriculture ministry official informed.
The banks including public sector, cooperative and regional rural banks, were set a target to lend Rs 3,25,000 crore (Rs 3,250 billion) of credit to farmers last fiscal.
The farm credit was extended to as many as 4.82 crore (48.2 million) farmers last year and banks gave crop loan to 91 lakh (9.1 million) new farmers.
According to official data, public sector banks lent Rs 2,75,000 crore (Rs 2,750 billion) of farm credit, while co-operative and RRBs loaned Rs 58,000 crore (Rs 580 billion) and Rs 34,000 crore (Rs 340 billion) respectively in 2009-10.
The total farm credit flow in 2009-10 fiscal was higher than the previous year's Rs 3,02,000 crore (Rs 3,020 billion), the official said.
Usually, farmers are given credit at an interest rate of seven per cent per annum.
However, in a move to reward those farmers who make their loan payment on time, the central government reduced their loan interest rate to 6 per cent last year and 5 per cent this year.
