Skip to main content

Govt extends interest subvention on crop loans for farmers

The Central Government has extended the interest subvention scheme to banks to ensure availability of crop loans up to Rs 3 lakh to farmers at 7 percent per annum

Related Category: Sub Category:

The Central Government extended the interest subvention scheme to banks to ensure availability of crop loans of up to Rs 3 lakh to farmers at 7 percent per annum.

According to sources, 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 of up to Rs 3 lakh to farmers at 7 percent per annum during 2015-16.

The Cabinet has approved an additional interest subvention of 3 percent per annum for those farmers who repay on time, the sources said to the agencies.

They added that it decided to provide interest subvention to small and marginal farmers with Kisan Credit Cards for loans against negotiable warehouse receipts post-harvest at 7 percent 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 percent will continue to be available to banks for the first year on the restructured amount. For 2015-16, the target of agriculture credit has been raised to Rs 8,50,000 crore, from Rs 8,00,000 in 2014-15.

Votes with an average with
For more updates, be socially connected with us on
WhatsApp | LinkedIn | Twitter | Facebook

Related Story

COVID-19: Centre promotes Direct Marketing to decongest agri mandis, Photo: Shutterstock
COVID-19: Centre promotes Direct Marketing to decongest agri mandis

In the wake of maintaining social distancing during the trade of agricultural produce amid COVID-19 pandemic, the Department of Agriculture, Government of India has written to the state…

COVID-19: KVIC procures cocoon from Tamil Nadu farmers
COVID-19: KVIC procures cocoon from Tamil Nadu farmers

At a time when the country is struggling hard with COVID-19 pandemic, Khadi and Village Industries Commission (KVIC), an autonomous body under Ministry of MSME, in collaboration with its Khadi…

FARMING BY SATELLITE launches ideas competition
FARMING BY SATELLITE launches ideas competition

Aimed at young farmers as well as trainees and students, principally in the fields of IT, mechanical engineering and agricultural sciences, European GNSS Agency (GSA) and European Environment…


The website encountered an unexpected error. Please try again later.