The Union Govt extends interest subvention on crop loans for farmers
The government extended the interest subvention scheme to
banks to ensure availability of crop loans of up to Rs 3 lakh to farmers at 7 %
The Union Cabinet has given its approval to continuation of
interest subvention to public sector banks (PSBs), private sector commercial
banks, regional rural banks (RRBs), cooperative banks and NABARD to enable them
to provide short-term crop loans during 2015-16.
The Cabinet has approved an additional interest subvention
of 3 % per annum for those farmers who repay on time.
The govt. decided to provide interest subvention to small
and marginal farmers with Kisan Credit Cards for loans against negotiable
warehouse receipts post-harvest at 7 % per annum interest for six months.
The Union Cabinet, chaired by Prime Minister Narendra Modi,
also decided to provide relief to farmers affected by natural calamities, where
the interest subvention of 2 % will continue to be available to banks for the
first year on the restructured amount.
The target of agriculture credit has been raised to Rs
8,50,000 crore For 2015-16 from Rs 8,00,000 in 2014-15.