India News | Govt Approves Continuation of Interest Subvention Scheme for Short-term Crop Loans
Get latest articles and stories on India at LatestLY. The government has approved the continuation of interest subvention scheme for short-term loans of up to Rs 3 lakh for agriculture and allied activities availed through Kisan Credit Card (KCC) during the current and the next fiscals.
Mumbai, Nov 23 (PTI) The government has approved the continuation of interest subvention scheme for short-term loans of up to Rs 3 lakh for agriculture and allied activities availed through Kisan Credit Card (KCC) during the current and the next fiscals.
In order to provide short-term crop loans for agriculture and allied activities, including animal husbandry, dairy, fisheries, and bee keeping, up to an overall limit of Rs 3 lakh to farmers through KCC at concessional interest rate, the government provides subsidy to banks.
Under the scheme, farmers get loan at a concessional interest rate of 7 per cent. An additional interest subvention of 3 per cent per annum is provided to farmers who repay loans in time.
In a circular, the Reserve Bank said the rate of interest subvention to lending institutions will be 1.5 per cent for the years 2022-23 and 2023-24.
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The subvention was 2 per cent for 2021-22 fiscal year.
In order to discourage distress sale by farmers and to encourage them to store their produce in warehouses, the benefit of interest subvention under KCC will also be available to small and marginal farmers for a further period of up to six months post the harvest of the crop against negotiable warehouse receipts of the produce stored in warehouses accredited with the Warehousing Development Regulatory Authority (WDRA).
RBI further said that to ensure hassle-free benefits to farmers under the interest subvention scheme, Aadhaar linkage would continue to be mandatory for availing the above mentioned short-term loans in 2022-23 and 2023-24.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)