(a) whether the Government proposes to include the Private Sector Banks in the interest
subvention scheme available for short-term crop loans;
(b) if so, the details thereof and if not, the reasons therefor; and
(c) the steps taken/being taken by the Government in this direction?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c) : The Interest Subvention Scheme of the Government of India is being implemented by Public Sector Banks, Regional
Rural Banks and Cooperative Banks since 2006-07 to provide 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 payee farmers, i.e. those who repay their loan in time. The additional subvention was 1% in 2009-10 and 2% in 2010-11.
This is being increased to 3% in 2011-12.