New Delhi, August 17
The Union Cabinet on Wednesday authorised interest subvention of 1.5 per cent on short-term agriculture loans of up to Rs 3 lakh for all monetary establishments, a transfer geared toward guaranteeing enough credit score stream within the farm sector.
The Cabinet, chaired by Prime Minister Narendra Modi, has authorised restoring interest subvention on short-term agriculture loans of 1.5 per cent for all monetary establishments, Information and Broadcasting Minister Anurag Thakur stated.
The 1.5 per cent interest subvention will likely be offered to lending establishments (private and non-private sector banks, small finance banks, regional rural banks, cooperative banks and computerised Primary Agriculture Credit Societies) for the monetary yr 2022-23 to 2024-25 for offering short-term agri loans of up to Rs 3 lakh to farmers.
“This increase in Interest Subvention support requires additional budgetary provisions of Rs 34,856 crore for the period of 2022-23 to 2024-25 under the scheme,” an official assertion stated.
The improve in interest subvention will guarantee sustainability of credit score stream within the agriculture sector in addition to monetary well being and viability of the lending establishments.