Krishi VaartaOutlook Agriculture
RBI: Farmers with Short-Term Crop Loans will Now Get 2% Interest Subsidy
The Reserve Bank of India (RBI) notified bank standards about 2% interest subsidy for relatively short-term crop loans during 2018-19 and 2019-20. This scheme is already sanctioned by the Centre.
The RBI has decided to offer to 2% annual interest subsidy to lending institutions in order to provide farmers with short-term crop loans up to Rs. 3 lakh at an interest rate of 7%. The effective rate of short-term crop loans works out to be 4% per annum for such farmers.
This interest subvention of 2 percent will be calculated on the crop loan amount from the date of its disbursement/drawal up to the date of actual repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks whichever is earlier, subject to a maximum period of one year," it said in a notification.
Source: Outlook Agriculture, March 07, 2019
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