Crop Insurance – PMFBY, etc.

Govt approves interest subvention scheme for crop loan

  1. Scheme: The Central Government will provide interest subvention of 5% per annum to all farmers for short term crop loan up to one year for loan up to Rs 3 lakh borrowed by them during the year 2016-17
  2. Farmers will thus have to effectively pay only 4% as interest
  3. Eligibility: Applicable for all farmers availing short-term crop loans up to Rs 3 lakh for one year
  4. For: Public and private sector banks, in addition to cooperative banks, regional rural banks and NABARD for providing short term crop loan to farmers
  5. Quick facts: Government has set an agricultural credit target for banks at Rs 9 lakh crore for the current fiscal, up from Rs 8.5 lakh crore 2015-16
  6. The interest subvention scheme was earlier implemented by the Finance Ministry but it was transferred to the Agriculture Ministry this year
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