More than 12 lakh loans extended in rural areas between April, 2020 and November, 2022

Last updated: 13 December 2022

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Public sector banks have issued more than 12 lakh loans in rural areas across India between April 2020 and November 2022. This significant lending activity, aimed at supporting various needs including industry setup, was announced by the Union Minister of State for Finance, Dr Bhagwat Kisanrao Karad. While industry setup is a state subject, banks actively provide credit to young entrepreneurs in both rural and urban areas.

As per the data provided by Public Sector Banks, more than 12 lakh loans have been extended in rural areas across the country, after the Covid period i.e. from April, 2020 to November, 2022. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

12 Lakh Rural Loans Issued Post-Covid (Apr 2020-Nov 2022)

The Minister also stated that setting up of industries is a State subject. However, the Minister further stated that banks provide credit to youths for setting up industries across the country including rural areas. As per RBI circular dated 9^th April, 2010, all credit related matters of banks, including charging rate of interest (ROI), have been deregulated and are governed by the bank's own lending policies, considering relevant factors such as cost of funds, margin, risk premium etc. within the extant regulatory guidelines, the Minister stated.

The state-wise details are ANNEXURED.

FAQ :

More than 12 lakh loans were extended in rural areas across the country.

The data covers the period from April 2020 to November 2022.

The information was provided by the Union Minister of State for Finance, Dr Bhagwat Kisanrao Karad, in a written reply to the Lok Sabha.

Yes, banks provide credit to youths for setting up industries across the country, including rural areas.

Credit-related matters, including interest rates, have been deregulated since April 2010 and are governed by each bank's own lending policies.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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