To make access to agriculture credit easy, the government yesterday introduced a slew of measures in the interest subvention scheme for the year 2017-18 which is under implementation by NABARD and RBI. As part of the move, such that farmers can avail credit in a hassle free manner, RBI has asked banks to link their aadhaar identity while they come to avail short-term crop loan.
A Union Cabinet meet headed by Narendra Modi said, "Objective of the scheme is to make available at ground level, agricultural credit for short term crop loans at an affordable rate to give a boost to agricultural productivity and production in the country."
As part of the scheme an interest subvention @ 2% shall be granted on an annual basis to PSBs as well as private banks for use of their own capital. By this farmers will be able to secure loans upto Rs. 3 lakhs at a cheaper rate of interest of 7% p.a. The interest subvention on the crop or agriculture loan shall be computed from the date of disbursement of date of drawal of the funds upto the actual repayment or upto the due date as fixed by the banker which is of maximum 1 year.
For those farmers who shall make timely repayment of loan, an additional subvention of 3% is earmarked which means such farmers shall be able to secure crop loan for the FY 2017-18 at a cheapest rate of 4%.
For farmers who have been hit hard by a natural calamity, an interest subvention to the tune of 2% on an annual basis shall be made available to the banks for the 1st year in case of the restructured loan amount. Nonetheless, from second year onwards they would continue to attract the prevailing or applicable interest rates.
For small and marginal farmers in hold of Kisan Credit Card, the credit facility shall be extended for another six months post crop harvest and they shall be able to secure crop loan at the same subsidized rate.