<h1>India's Interest Subvention Scheme: Farmers Get Crop Loans at Reduced 4% Rate with Prompt Repayment Incentive.</h1> The Government of India, through the Department of Agriculture Cooperation and Farmers Welfare, implements an interest subvention scheme to provide short-term crop loans up to Rs. 3 lakh to farmers at a concessional interest rate of 7% per annum. Lending institutions such as Public Sector Banks, Private Sector Commercial Banks, Regional Rural Banks, and Cooperative Banks receive a 2% interest subvention. Farmers who repay promptly get an additional 3% incentive, reducing the effective interest rate to 4%. Cooperative Banks receive direct interest subvention to offset potential losses. NABARD offers short-term refinance support at 4.5% interest, but there are no plans to increase NABARD's refinancing limit.