The Union Government informed the Lok Sabha on Monday that the total outstanding institutional loan to the agriculture sector in India has reached Rs 31.34 lakh crore as of December 31, 2025, reflecting the scale of credit flow to support farming activities across the country.
Replying to a Question by MP Raja A, Minister of State for Finance Pankaj Chaudhary said the data, compiled by the National Bank for Agriculture and Rural Development (NABARD), shows that crop loans amount to Rs 16.34 lakh crore, while term loans account for Rs 15.00 lakh crore, taking the total agricultural credit outstanding to Rs 31,34,807.42 crore under the Ground Level Credit (GLC) flow to agriculture.
According to NABARD’s All India Rural Financial Inclusion Survey (NAFIS) 2021–22, about 55 per cent of agricultural households in India have availed credit facilities. The survey indicates that farmers primarily take loans to meet capital investment needs, working capital requirements and other farm-related expenses necessary to sustain and expand agricultural operations.
Providing state-wise details, the Government said Tamil Nadu recorded the highest outstanding agricultural credit at Rs 5.06 lakh crore, followed by Andhra Pradesh with Rs 3.75 lakh crore and Maharashtra with Rs 3.07 lakh crore. Other major credit recipients include Uttar Pradesh (Rs 2.30 lakh crore), Karnataka (Rs 2.10 lakh crore) and Rajasthan (Rs 1.92 lakh crore).
The Minister said the Government has taken several steps to strengthen institutional credit access for farmers. These include annual targets for agricultural credit flow, Priority Sector Lending norms for banks, and access to affordable loans through the Kisan Credit Card (KCC) and the Modified Interest Subvention Scheme (MISS).
In addition to credit support, the Government is implementing several long-term initiatives aimed at improving farmers’ income and resilience. These include Pradhan Mantri Kisan Samman Nidhi, Pradhan Mantri Fasal Bima Yojana, Krishonnati Yojana, and Rashtriya Krishi Vikas Yojana, which provide income support, crop insurance and development assistance to the agricultural sector.
The institutional agricultural credit system also includes cooperative banks and Primary Agricultural Credit Societies (PACS), which play a crucial role in delivering farm loans at the grassroots level.
With policy support and refinance from National Bank for Agriculture and Rural Development, the cooperative credit structure, comprising State Cooperative Banks, District Central Cooperative Banks and PACS, continues to support millions of farmers, particularly small and marginal cultivators, by providing accessible and affordable agricultural credit across rural India.
