There is a news of relief for farmers. The government has approved the continuation of the interest subsidy scheme for short-term loans up to three lakh rupees for agriculture and related activities taken through Kisan Credit Card (KCC) during the current financial year. According to the news of Bhasha, under this scheme, farmers get loans at a concessional interest rate of seven percent. Farmers who repay the loan on time are provided additional interest subsidy of three percent per annum.
Rate of interest subsidy to lending institutions
According to the news, the Reserve Bank of India said that this also means that farmers who repay the loan on time as per the above will get short-term crop loans and or short-term loans for allied activities including animal husbandry, dairy, fisheries, beekeeping etc. at the rate of four per cent per annum during the financial year 2024-25. In a circular, the central bank said that the rate of interest subsidy to lending institutions will be 1.5 per cent for 2024-25.
Will be available to small and marginal farmers
The RBI said that in order to discourage panic selling by farmers and to encourage them to store their produce in godowns, the benefit of interest subvention under KCC will be available to small and marginal farmers for a period up to six months after harvesting of the crop. The RBI circular said that in order to provide relief to farmers affected by natural calamities, the interest subvention rate applicable for that year will be made available to banks for the first year on the restructured loan amount. Normal interest rate will be applicable on such restructured loans from the second year onwards.
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