Farmers will continue to get short-term loan of up to Rs 3 lakh at a subsidised interest rate of 7 per cent, and prompt repayers will get it at 4 per cent as the government on Wednesday extended the subsidy to banks for 2017-18.
The Interest Subvention Scheme for 2017-18 has been approved in the Cabinet meeting, headed by Prime Minister Narendra Modi, on Wednesday.
"The Cabinet has approved the total expenditure of Rs 20,339 crore in the current financial year as interest subsidy on short-term crop loans," a senior government official said.
The short-term crop loan of up to Rs 3 lakh will continue to be made available to the prompt payee farmers at 4 per cent interest rate only, the official said.
More will update soon!!
