Key facts
- Agricultural and rural credit demand is projected to remain strong in FY27.
- Elevated input costs are a key driver of credit demand.
- Expanded Kisan Credit Card coverage is contributing to demand.
- Increased investments in allied agricultural activities are a factor.
- Investments in rural infrastructure are also driving credit demand.
- NABARD Deputy Managing Director Ajay Kumar Sood made these projections.
- Agricultural credit disbursement has increased significantly over the past decade.
Agricultural and rural credit demand is projected to stay strong through FY27, driven by several key factors including elevated input costs, expanded coverage of the Kisan Credit Card scheme, and increased investments in allied agricultural activities and rural infrastructure. NABARD Deputy Managing Director Ajay Kumar Sood stated that these elements are expected to sustain the demand for credit within the agricultural sector. Sood also pointed to a significant increase in agricultural credit disbursement over the past decade, underscoring a growing reliance on and access to credit for farming and related rural enterprises. The Kisan Credit Card scheme, in particular, is noted for its expanding reach, contributing to the overall demand for agricultural finance. Investments in allied activities such as animal husbandry, fisheries, and forestry, alongside essential infrastructure development in rural areas, are also identified as significant drivers. These investments are crucial for enhancing productivity, diversification, and resilience within the agricultural economy. The sustained demand suggests a continued need for financial products and services tailored to the agricultural and rural landscape, supporting both operational expenses and capital development for farmers and rural businesses.