Govt approves short-term crop loans up to Rs 3 lakh at subsidised rate of 4 per cent

"The Central Government will provide interest subvention of 5 per cent per annum to all farmers for short term crop loan up to one year for loan up to Rs 3 lakh," an official statement said.

By: PTI | New Delhi | Updated: July 6, 2016 12:50 pm
ravi shankar prasad, crop loan, agriculture india, agriculture loan, farmer suicide, indian economy The subvention scheme is applicable for all farmers availing short-term crop loans up to Rs 3 lakh for one year, Telecom Minister Ravi Shankar Prasad said.

Farmers will get short-term crop loans of up to Rs 3 lakh at a subsidised interest rate of 4 per cent this fiscal year, provided they repay in time, or else a higher rate of 7 per cent will be charged.

“The Central Government will provide interest subvention of 5 per cent per annum to all farmers for short term crop loan up to one year for loan up to Rs 3 lakh borrowed by them during the year 2016-17. Farmers will thus have to effectively pay only 4 per cent as interest.

“In case farmers do not repay the short term crop loan in time they would be eligible for interest subvention of 2 per cent as against 5 per cent available above,” said an official statement issued after the Cabinet meeting.

WATCH: Analysing Modi Cabinet Reshuffle: Smriti Irani Loses HRD; Javadekar, Piyush Goyal Gain

 

The subvention scheme is applicable for all farmers availing short-term crop loans up to Rs 3 lakh for one year, Telecom Minister Ravi Shankar Prasad said.

Interest subvention scheme is for public and private sector banks, in addition to cooperative banks, regional rural banks and NABARD for providing short term crop loan to farmers.

Further, in order to give relief to small and marginal farmers who would have to borrow at 9 per cent for the post harvest storage of their produce, the government has approved an interest subvention of 2 per cent. This means the effective interest rate is 7 per cent for loans up to six months.

Also, “to provide relief to the farmers affected by natural calamities, the interest subvention of 2 per cent will be provided to banks for the first year on the restructured amount,” the release added.

Government has set an agricultural credit target for banks at Rs 9 lakh crore for the current fiscal, up from Rs 8.5 lakh crore 2015-16.

The interest subvention scheme was earlier implemented by the Finance Ministry. It was transferred to the Agriculture Ministry this year.

For all the latest Business News, download Indian Express App

  1. P
    Praveen Kumar
    May 29, 2017 at 8:46 pm
    I want agriculture loan ,but how to apply ,pls call me 8144909114
    Reply
    1. J
      JITENDRA KUMAR
      Feb 22, 2017 at 4:09 pm
      i want agricultural loan but how to apply.
      Reply
      1. R
        rakesh minz
        Feb 4, 2017 at 3:29 pm
        main 300000 rupye beej bone ke udesya se loan lena chahta hun.lt;br/gt;lt;br/gt;but 300000 rupye one year me repay karna possible nahi lag raha hai.lt;br/gt;lt;br/gt;agar 300000 rupye one year me repay nehi ho pata hai to government ka niyam aur sharte kya hai?lt;br/gt;lt;br/gt;kripya is prashn ka utr dene ki kast karen.
        Reply
        1. R
          Ramalingamm
          Dec 28, 2016 at 8:06 am
          I want agriculture loan 500000
          Reply
          1. A
            Anthony Cruz Investment
            Jun 14, 2017 at 8:23 pm
            Are you a business man or woman? Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you need funds to finance your project? We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) at our superb interest rate of 3 . For application and more information send replies to the following E-mail address: quickcashinvestment2933 WhatsApp 918951308692 Thanks
            Reply
          2. p
            p.sunkanna
            Nov 1, 2016 at 5:20 am
            i want agriculture loan
            Reply
            1. B
              Baliram Ramesh
              Dec 25, 2016 at 3:40 pm
              Muze sinchai loan chahiye
              Reply
              1. A
                Anthony Cruz Investment
                Jun 14, 2017 at 8:23 pm
                Are you a business man or woman? Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you need funds to finance your project? We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) at our superb interest rate of 3 . For application and more information send replies to the following E-mail address: quickcashinvestment2933 WhatsApp 918951308692 Thanks
                Reply
              2. M
                Manisha
                Sep 19, 2016 at 3:42 pm
                Personal loan 300000lt;br/gt;my monthly income 17142 inhand
                Reply
                1. Load More Comments