Monday, October 15, 2012

2 PERCENT INTEREST SUBVENTION AND 3 PERCENT ADDITIONAL SUBVENTION FOR SHORT-TERM CROP LOANS

The Reserve Bank of India (RBI) has said that the interest subvention scheme for providing short
term loans to farmers at 7 per cent interest per annum will be continued in 2012-13. An additional
subvention of three per cent will be available to prompt paying farmers. In addition, the same
interest subvention on post harvest loans up to six months against negotiable warehouse receipt
will also be available. This will encourage the farmers to keep their produce in warehouses.
Similar to the previous year (2011-12), the benefits of interest subvention will also be available to
small and marginal farmers having Kisan Credit Card (KCC) for a further period of up to six
months post harvest on the same rate as available to crop loan against negotiable warehouse receipt
for keeping their produce in warehouses.

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