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  4. Cabinet okays 1.5 percent interest subvention on short-term agri loans of up to Rs 3 lakh

Cabinet okays 1.5 percent interest subvention on short-term agri loans of up to Rs 3 lakh

The 1.5 percent interest subvention will be provided to lending institutions for the financial year 2022-23 to 2024-25 for providing short-term agri loans of up to Rs 3 lakh to farmers.

PTI Reported By: PTI New Delhi Published on: August 17, 2022 17:08 IST
union cabinet, agri loans, agriculture loans, narendra modi, modi, bjp, anurag thakur
Image Source : PTI The Cabinet, chaired by Prime Minister Narendra Modi, has approved restoring interest subvention on short-term agriculture loans of 1.5 per cent for all financial institutions, Information and Broadcasting Minister Anurag Thakur said.

The Union Cabinet on Wednesday approved an interest subvention of 1.5 per cent on short-term agriculture loans of up to Rs 3 lakh for all financial institutions, a move aimed at ensuring adequate credit flow in the farm sector.

The Cabinet, chaired by Prime Minister Narendra Modi, has approved restoring interest subvention on short-term agriculture loans of 1.5 per cent for all financial institutions, Information and Broadcasting Minister Anurag Thakur said.

The 1.5 percent interest subvention will be provided to lending institutions (public and private sector banks, small finance banks, regional rural banks, cooperative banks and computerised Primary Agriculture Credit Societies) for the financial year 2022-23 to 2024-25 for providing short-term agri loans of up to Rs 3 lakh to farmers.

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"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 statement said.

The increase in interest subvention will ensure the sustainability of credit flow in the agriculture sector as well as the financial health and viability of the lending institutions.

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