The Reserve Bank of India has notified that farmers can now enjoy corp loans at just 4% next financial year as GOI has approved implementation of interest rate subvention schemes with an extension. They can obtain such rate if they repay existing loans promptly. Earlier in the budget proposals, the government had mentioned about of 2% interest subvention scheme for the year 2015-16 for short term crop loans upto Rs 3 lakhs.
The benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for a further period of up to six months post-harvest on the same rate as available to crop loan.
Kisan Credit Card
- A Kisan Credit Card is a credit card to provide affordable credit for farmers in India.
- It was started by the Government of India, RBI, and NABARD in 1998-99 to help farmers access timely and adequate credit.
- The Kisan Credit Card allows farmers to have cash credit facilities without going through time-consuming bank credit screening processes repeatedly.
- The card is valid for five years and subject to annual renewals.
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