Friday, 15 July 2016

Crop Loan Scheme 2016-17 for Farmers Approved by Cabinet

A farmer centered Interest Subvention Scheme has been approved by the Prime Minster Narendra Modi for farmers for the year 2016-17. An amount of Rs. 18,276 crore has been earmarked for the scheme.
Under the scheme, the farmers will be able to get a short term crop loan of upto Rs. 3 lakh for one year at interest rate of just 4% per annum.

Salient Features of Crop Loan Interest Subvention Scheme for Farmers

1. Under the new scheme, Central government will provide interest subvention of 5 percent per annum to all farmers for short term crop loan of upto Rs. 3 lakh for year borrowed by them during the year 2016-17. Farmers will thus have to pay only the loan with 4% interest. In case the farmer do not repay the short term crop loan then they have to pay the 7% interest against 4%. In this case, the farmers will only be eligible for interest subvention of 2% as against 5% available above.
Interest subvention scheme is applicable for both public and private sector banks, in addition to cooperative banks, regional rural banks and NABARD for providing short term crop loan to farmers.
2. In 2016-17, the central government will provide around Rs. 18,276 crore as interest subvention for farmers.
3. The scheme will also provide a relief to small and marginal farmers who would have to borrow at 9% for the post-harvest shortage of their produce, the union government has approved an interest subvention of 2%. This type of farmer will able to get a loan at the interest rate of 7% upto 6 months under the scheme.
4. A relief to the farmers affected by Natural Calamities will also be provided under the scheme, the interest subvention of 2% will be provided to banks for the first year on the restructured amount.


No comments:

Post a Comment