In the budget for 2013-14 presented by the Finance Minister Sh. P. Chidambaram in Lok Sabha today, the agricultural credit target has been increased to Rs. 7 lakh crores from the earlier Rs. 5.75 lakh crores. The short-term crop loan scheme (Interest Subvention Scheme) has been extended to the crop loans borrowed from private sector scheduled commercial banks in respect of loans given in the service area of the branch concerned. Earlier the scheme was applicable to loans extended by the Public Sector Banks, Regional Rural Banks (RRBs) and Co-operative Banks.

Under this Interest Subvention Scheme, a farmer will be able to get loans at 4 per cent per annum if he repays the short-term crop loan on time.

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DSM/AL/NV/3

(Release ID :92711)

Interest subvention scheme extended to private scheduled commercial banks, preserving concessional interest for timely repaid crop loans. Agricultural credit target raised to Rs. 7 lakh crores and the short term crop loan Interest Subvention Scheme is extended to private sector scheduled commercial banks for loans within the lending branch's service area. The scheme continues to cover loans by Public Sector Banks, RRBs and Co operative Banks, and provides farmers who repay short term crop loans on time with a concessional effective interest rate of 4 per cent per annum under the timely repayment incentive.