Government notifies 2% interest subvention on farm loans
Date : Sep-11-2009 15:38
The government cut the interest rate subsidy to 2% for this financial year on farm loans given by the public sector banks (PSU) from 3% last year and the decision to this effect was taken by the Union Cabinet. However, the financial implication due to the interest subsidy on farm loans by PSU banks, regional rural banks and co-operative credit institutions were at Rs4, 311 crore in 2008-09 while it was estimated to be at about Rs4, 000 crore in the current fiscal. Moreover, the government will pay 2% interest subsidy to banks for granting short- term crop loan to farmers for loans up to Rs3 lakh per farmer at a concessional rate of 7% under the interest subvention scheme.
Date : Sep-11-2009 15:38
The government cut the interest rate subsidy to 2% for this financial year on farm loans given by the public sector banks (PSU) from 3% last year and the decision to this effect was taken by the Union Cabinet. However, the financial implication due to the interest subsidy on farm loans by PSU banks, regional rural banks and co-operative credit institutions were at Rs4, 311 crore in 2008-09 while it was estimated to be at about Rs4, 000 crore in the current fiscal. Moreover, the government will pay 2% interest subsidy to banks for granting short- term crop loan to farmers for loans up to Rs3 lakh per farmer at a concessional rate of 7% under the interest subvention scheme.
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