THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): The Interest Subvention Scheme is being implemented by the Government of India since
2006-07 to make short-term crop loans upto Rs. 3 lakh for a period of one year available to
farmers at the interest rate of 7 percent per annum. The Government of India has since 2009-10
been providing additional interest subvention to prompt payees farmers, i.e., those who repay
their loans in time. The additional subvention was 1% in 2009-10, 2% in 2010-11 and 3% in
2011-12. Further, in order to discourage distress sales, the benefit of interest subvention
was made available in the year 2011-12 to small and marginal farmers having Kisan Credit Card
for a further period of up to six months post harvest on the same rates as available to crop
loans against negotiable warehouse receipts for keeping their produce in warehouses. The
Interest Subvention Scheme for the year 2011-12 has been continued in 2012-13 as well.
(c) & (d) : The interest rates are revised periodically by the Asset Liability Committee (ALCO)
of NABARD taking into consideration liquidity, market conditions, risk category etc. The rate
of interest presently charged by NABARD on refinance for providing loan for long term
agriculture loans ranges from 9.20% to 9.35% for Commercial Banks, State Co-operative Banks
(SCBs) and Regional Rural Banks (RRBs), from 9.90% to 11% for State Co-operative Agriculture
and Rural Development Banks (SCARDBs) and from 10.00% to 11.25% to Non-Banking Financial
Corporations (NBFCs).
(e) & (f): No Sir. There is no such proposal under consideration of the Government.
