New Delhi: The government today decided to release Rs 4,868 crore to public sector lenders for providing concessional loans to farmers.
The decision, taken at a Cabinet meeting, will help lenders provide farmers short-term crop loan at 7 per cent interest.
“The Union Cabinet today gave its approval for the release of Rs 4,868 crore as interest subvention to Public Sector Banks (PSBs), Regional Rural Banks (RRBs), Cooperative Banks and NABARD for refinance to RRBs at concessional rates to reimburse the amount of interest subvention to ensure that the farmer, in general, should receive short-term crop loan at 7 per cent per annum this fiscal,” the government said in a statement.
The lenders would have given loans to farmers at 9 per cent, had the subsidy of 2 per cent not been provided by the government.
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