Highlights of Economic Package! Rs 2 Lakh Crore Concessional Credit Boost to 2.5 Crore Farmers via KCC & Other Details

What more could be asked for when the world is suffering from economic crisis and PM Narendra Modi has announced for Rs 20 lakh crore economic package. Today Finance Minister Nirmala Sitharaman has rolled out the second instalment of the Rs 20 lakh crore economic stimulus announced by PM Narendra Modi. It aimed to help migrant workers and farmers.

The initiative has provided big relief to migrant workers, street vendors, small traders, self-employed people, small farmers, said Sitharaman while starting her announcements today.

Good News: KCC Holders, Farmers, Fisherman, Animal Husbandry Farmers

The central government has announced Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan Credit Cards (KCC). Fishermen & animal husbandry farmers will also be able to get the benefits of this move. Under this scheme, about 2.5 crore farmers will be covered. It will help farmers to gain access to institutional credit at concessional interest rate.

25 lakh New Kisan Credit Cards Sanctioned

As of now, around 25 lakh new Kisan Credit Cards has been sanctioned with a loan limit of 25,000 crore. Sitharaman said, “We have not forgotten them. These new credit cards have been sanctioned totaling ₹25,000 crores. There may have been a lockdown but government has not been sitting quiet." Interestingly, about 3 crore marginal farmers has already availed the benefits of Rs 4 lakh crore loans on concessional rates. Those who had availed this credit were also given a moratorium for three months. The interest subvention & prompt repayment incentive on crop loans due from March was extended to May 31.

Role of NABARD in Economic Package

NABARD will extend additional refinance support of Rs 30,000 crore for crop loan requirement of rural co-operative banks & regional rural banks. This amount was more than and above Rs 90,000 crore to be given by NABARD through refinance route this year, said minister.

She added, the additional support will benefit around 3 crore farmers mostly small and marginal to meet their post-harvest (Rabi) and current Kharif crop requirements in May and June.

Benefits for Small Businesses

The minister said, “A two percent interest subvention under MUDRA-Shishu loans of up to Rs 50,000 will be given for small businesses. This would cost the government Rs 1,500 crore. For street vendors, the working capital loan would cost Rs 5,000 crore.”