20,339 crore rupees has sanctioned for the Interest subvention scheme in a cabinet meeting, led by the Prime Minister Narendra Modi on Wednesday. The interest subsidy is only for short term crop loans in the current financial year.
Only four percent interest rate is available for that farmer who pays the interest in timely up to three lakh loan amount. In the cabinet meeting, also approved the 20,339 crores for the current financial year on short term crop loan.
The DG, Press Information Bureau, Frank Noronha tweeted the information as #Cabinet approves Interest subvention for short-term CropLoans to farmers for the current year.#Cabinet: Crop Loans up to Rs. 3 lakhs made available to the prompt payee farmers at 4% interest rate only. #Cabinet has approved the total expenditure of Rs. 20,339 crore in the current financial year as #InterestSubsidy on short term crop loans,?
The decision of interest subvention comes when the farmers of the various part of the Country is protesting for the Loan Subvention. The currently Maharastra and Madhya Pradesh farmers issue is the highlight.
The Reserve Bank of India also said to all banks to continue giving the discount on interest on short-term crop loans during the current financial year.