A large share of crop loans issued through Primary Agricultural Cooperative Societies (PACS) in Tamil Nadu’s Erode district is benefiting small and marginal farmers, Union Cooperation Minister Amit Shah informed the Rajya Sabha on Wednesday.
According to data shared by the minister, more than 90 per cent of crop loans disbursed through PACS in Erode district during the last four years went to small and marginal farmers. In 2024-25 alone, loans worth Rs 1,308.63 crore were issued, of which Rs 1,190.70 crore, about 92 per cent, was extended to small and marginal farmers.
Similarly, in the Gobichettipalayam and Bhavani areas, the share of crop loans to small and marginal farmers ranged between 94 per cent and 98 per cent during the same period.
Shah said farmers’ applications for crop loans under the Kisan Credit Card scheme are generally processed within seven days after submission of required documents. Farmers are also informed about interest subvention benefits through financial literacy camps conducted by NABARD and through PACS.
The Central Government provides an additional 3 per cent interest subvention to farmers for prompt repayment of crop loans. Due to these awareness initiatives, loan recovery in Erode district has remained consistently high at around 99 per cent, reflecting strong credit discipline among cooperative borrowers.
