(a): whether the Government proposes to provide medium term crop
loans to the affected farmers at the same rate of interest and interest
subvention as in the case of short term crop loans; and
(b) if so, the details thereof and if not, the reasons therefor?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): No such proposal is under consideration of the Government
of India. The Government of India has since 2006-07 been subsidizing short
term crop loans to farmers in order to ensure the availability of crop loans
to farmers for loans up to Rs.3.00 lakh, at 7 % p.a. This Interest Subvention
Scheme has been further continued for 2010-11 for Public Sector Banks, Regional
Rural Banks and Cooperative Banks. This year an additional subvention of 2% to
farmers, who repay on time has been provided. Thus, the effective rate of
interest for such farmers is five per cent per annum for 2010-11. In the year
2011-12, it is proposed to provide these loans @ 4% p.a. to prompt repaying
farmers under the Interest Subvention Scheme 2011-12.