The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Interest Subvention Scheme for farmers for the year 2016-17. The Government has earmarked a sum of Rs. 18,276 Crore for this purpose. This will help farmers getting short term crop loan payable within one year up to Rs. 3 lakhs at only 4% per annum.
The Central Government will provide interest subvention of 5% per annum to all farmers for short term crop loan up to 1 year for loan upto 3 lakhs rupees for year 2016-17. Thus farmers will have to effectively pay only 4% as interest. In case they fail to repay loan in time they would be eligible for interest subvention of 2% as against 5% available above.
Union Government will provide an interest subvention of 2% i.e an effective interest rate of 7% for loans upto 6 months to give relief to small and marginal farmers who borrow at 9% for the post-harvest storage of their produce. The interest subvention of 2% will be provided to Banks for the first year on the restructured amount in order to provide relief to the farmers affected by natural calamities.
So let’s do:
1. Cabinet approves ___________ scheme for farmers.
Source – The Hindu