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.