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Union Government extended Interest Subvention Scheme to banks

  • Union Government extended the interest subvention scheme (ISS) on JULY 21,2015.
  • PUBLIC SECTOR BANK, PRIVATE SECTOR BANK, COMMERCIAL BANKS, RURAL REGIONAL BANKS, COOPERATIVE BANKS and NABARD were covered by the Union Government to extend this interest subvention scheme.
  • This scheme ensures availability of crop loans upto Rupees 3 Lakhs at the rate of 7 percent per annum.
  • Additional interests subventions of 3 percent per annum were given to those farmers who repay on time were approved by the cabinet.
  • The agriculture credit in 2014-15 was Rs 8,00,000. It has been raised to Rs 8,50,000 for 2015-16.
  • The Union Cabinet also decided to provide interest subvention to small and marginal farmers with KISAN CREDIT CARDS for loans against negotiable warehouse receipts post-harvest at the rate of 7 percent per annum interest in 6 months.
  • The farmers who are affected by natural calamities, where the interest subvention of 2 percent will continue to be available to banks were covered in this interest subvention scheme.