RBI asks banks to provide short term crop loans to farmers
RBI has added that Aadhaar linkage would be mandatory for availing the short-term loans.
Reserve Bank of India has asked banks to provide short-term crop loans and short-term loans for allied activities including animal husbandry, dairy, fisheries, beekeeping, etc. up to an overall limit of 3 lakh rupees to farmers at an interest rate of 7 percent, aligning with the continuation of the Modified Interest Subvention Scheme by the Centre.
In a notification, RBI said that the rate of interest subvention to lending institutions will be 1.5 percent for 2024-25. RBI has said that an additional interest subvention of 3 percent should be provided to farmers who repay loans on time.
RBI has added that Aadhaar linkage would be mandatory for availing the short-term loans.
Read Also : NLCIL signs MoU with IIM CalcuttaMeanwhile, in order to discourage distress sale by farmers and to encourage them to store their produce in warehouses, the benefit of interest subvention under Kisan Credit Card scheme will be available to small and marginal farmers for a further period of up to six months post the harvest of the crop.
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