<h1>RBI Deregulates Loan Interest Rates; Banks to Set Rates with Board Approval; Special Schemes for Farmers and Rural Credit.</h1> The Reserve Bank of India has deregulated interest rates on loans provided by Scheduled Commercial Banks, allowing banks to set rates with their Board's approval, following RBI guidelines. Interest rates vary based on borrower credit profiles. To support farmers, the Indian government offers an interest subvention scheme, reducing short-term crop loan rates to 7% annually, with an additional 3% reduction for timely repayment, making it 4%. Additionally, the Long Term Rural Credit Fund, established with NABARD, provides long-term refinance to Cooperative and Regional Rural Banks to boost agricultural investment, with current rates at 4.90%.