Highlights of the scheme
- The interest subvention scheme for farmers aims at providing short term credit to farmers at subsidised interest rate.
- With a view to ensuring availability of agriculture credit {including loans taken against Kisan Credit Card (KCC)} at a reasonable cost/at a reduced rate of 7% per annum to farmers, the Government of India, is implementing an interest subvention scheme of 2% for short term crop loans up to Rs.3.00 lakh.
- Currently, besides 2% interest subvention, the farmers, on prompt repayment of crop loans on or before the due date, are also provided 3% additional interest subvention.
- The interest subvention will be given to Public Sector Banks (PSBs), Private Sector Banks, Cooperative Banks and Regional Rural Banks (RRBs) on use of own funds and to NABARD for refinance to RRBs and Cooperative Banks.
- The Scheme is provided for four segments namely;
- Interest subvention for short term crop loans.
- Interest subvention for post-harvest loans.
- Interest subvention under Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
- Interest subvention for relief to farmers affected by natural calamities
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