RBI notifies 2 pc interest subsidy scheme for short-term crop loans

1 min read
RBI

Mumbai: The Reserve Bank of India (RBI) notified the norms for banks with regards to two per cent interest subvention or subsidy for short-term crop loans during 2018-19 and 2019-20.

The Centre has already approved the scheme. To provide short-term crop loans up to Rs 3 lakh to farmers at an interest rate of 7 per cent, the RBI said it has been decided to offer interest subvention of 2 per cent per annum to lending institutions.

“This interest subvention of 2 per cent 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.

Under the scheme, an additional 2 per cent interest subvention is provided to farmers repaying loans promptly. For such farmers, the effective rate of short-term crop loans works out to be 4 per cent per annum.

(Except for the headline, this story has not been edited by The Kashmir Monitor staff and is published from a syndicated feed.)

Discover more from The Kashmir Monitor

Subscribe now to keep reading and get access to the full archive.

Continue reading

Don't Miss

ggg

Paradise calling: New survey says Kashmir most sought-after destination for solo traveling

Srinagar: Jammu and Kashmir is one of the most sought-after destinations for
RRR 1

RRR knocks out `The Kashmir Files’, earns Rs 257 Cr on Day 1  

S Rajamouli’s RRR (Roudram Ranam Rudiram) has knocked out `The Kashmir Files’