Cabinet nod for continuing farmers’ loan scheme

September 6th, 2012 - 9:39 pm ICT by IANS  

New Delhi, Sep 6 (IANS) The government Thursday approved a proposal to continue interest subvention to public sector banks (PSBs), regional rural banks (RRBs), cooperatives banks and NABARD to enable them to provide short-term crop loans up to Rs.3 lakh to farmers at 7 percent during 2012-13.

According to the scheme approved by the cabinet, the benefit will be given to the farmers who repay on time, that is within one year of disbursement, their short-term crop loans taken during 2012-13.

The scheme will also permit the release of Rs.10,901 crore as interest subvention for 2012-13 of which Rs.3,267 crore will go to NABARD for refinancing cooperatives banks and RRBs and Rs.7,634 crore to PSBs, RRBs and cooperative banks for subvention on their own funds.

Related Stories

Tags: , , , , , , , , , , , , , , ,

Posted in Business |