RBI announces modalities for 2% interest subvention for farmers engaged in fisheries and animal husbandry

Mumbai: The Reserve Bank of India (RBI) on Monday announced modalities for providing 2 percent interest subsidy on short-term loans of up to Rs 2 lakh for farmers engaged in fisheries and animal husbandry through Kisan Credit Card (KCC). With this interest subvention, such farmers will get a short-term loan of up to Rs 2 lakh at a concessional rate of 7 percent. The interest subsidy scheme is applicable for loans taken during 2018-19 and 2019-20. [caption id=“attachment_4875601” align=“alignleft” width=“380”] File image of RBI. AFP[/caption] Farmers paying the loans promptly will be eligible for another three percent discount on the interest rate. This also implies that the farmers repaying promptly would get short-term loans at the rate of 4 percent per annum during 2018-19 and 2019-20, the RBI said. The RBI further said interest subvention is to be provided on a maximum limit of Rs 2 lakh short-term loan to farmers involved in animal husbandry and fisheries. The farmers already possessing KCC (crop loan) and involved in animal husbandry and fisheries activities can avail a sub-limit for such activities. “However, the interest subvention and prompt repayment incentive benefit on short-term loan (crop loan + working capital loan for animal husbandry and fisheries) will be available only on an overall limit of Rs 3 lakh per annum and subject to a maximum limit of Rs 2 lakh per farmer involved in activities only related to animal husbandry and/or fisheries,” it said.