Saturday, November 14, 2009

CONTINUATION OF 2% INTEREST SUBVENTION SCHEME AND 1% ADDITIONAL INCENTIVE SUBVENTION FOR SHORT-TERM CROP LOANS IN 2009-10

Government will provide interest subvention of 2% p.a. to Public Sector Banks in respect of short-
term production credit up to Rs.3 lakh provided to farmers. This amount of subvention will be
calculated on the crop loan amount from the date of its disbursement/drawal up to the date of
repayment or up to the date beyond which the outstanding loan becomes overdue i.e. March 31,
2010 for Kharif and June 30, 2010 for Rabi, respectively, whichever is earlier, subject to a
maximum period of one year. This subvention will be available to Public Sector Banks on the
condition that they make available short-term credit at ground level at 7% p.a.

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