The Interest Subvention Scheme is being implemented by the Government of India since 2006-07 to make short-term crop loans upto Rs.3 lakhs for a period of one year available to farmers at the interest rate of 7 per cent per annum. The Government of India has since 2009-10 been providing additional interest subvention to prompt payee farmers. The additional subvention was 1% in 2009-10, 2% in 2010-11 and 3% in 2011-12. The Government has in the Budget speech of 2012-13 announced continuation of the scheme in 2012-13.
Interest Subvention is provided to Public Sector Banks, Regional Rural Banks and Cooperative Banks. Land Development Banks are not Cooperative Banks as defined in Banking Regulations Act, 1949 and are not covered under the Scheme.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.
Interest Subvention is provided to Public Sector Banks, Regional Rural Banks and Cooperative Banks. Land Development Banks are not Cooperative Banks as defined in Banking Regulations Act, 1949 and are not covered under the Scheme.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.
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