(a) whether the Government has introduced or propose to introduce any Interest Subvention
Scheme to provide agricultural loan at lower rates of interest;
(b) if so, the details thereof;
(c) the States where the said scheme is under operation; and
(d) the number of farmers benefited/likely to be benefited through the said scheme?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE(SHRI KANTI LAL BHURIA)
(a)to(c): Yes, Sir. The Government of India has introduced interest subvention scheme
for providing crop loan upto Rs.3 Lakh per borrower at 7% rate of interest per annum. The
policy came into force with effect from Kharif 2006-07. To implement the scheme, Government
of India also provided interest subvention @ 2% p.a. to Public Sector Banks, Regional Rural
Banks (RRBs) and Cooperative Banks on their own involvement of funds in the crop loan
disbursement. The interest subvention scheme has been continued for the year 2007-08 also
with a budgetary provision of Rs.1677 crore. The scheme is under implementation in the
entire country.
(d): All the farmers availing crop loans upto a principal amount of Rs.3 Lakh are eligible
beneficiaries under the scheme.