Mumbai: In an effort to boost credit flow to agriculture, Union Bank of India today announced interest rate cut for various categories under agriculture by up to 175 basis points.
Union Bank will offer crop loans, investment credit and loans for allied activities by up to Rs 50,000 at base rate only.
The interest rate for lending to self help groups (SHGs) has also been reduced by 175 bps, the bank said in a statement in Mumbai.
The revised interest rates are effective from 1 July. At present, the base rate of Union Bank of India is 10.50 percent.
For the benefit of farmers, Union Bank is extending credit under crop loan up to double the scale of finance fixed by DLTC (District Level Technical Committee).
It also offers 3 percent interest subvention upfront to the farmers for repayment of dues in time for both pre and post harvest finance, for loans up to 3 lakh.
Union Bank has already launched a new scheme Project Hariyali to provide additional touch points and facilitate the branches to reach out to the farmers with the help of business facilitators, the release said.