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

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)

Press Trust of India August 27, 2019 19:54:24 IST
RBI announces modalities for 2% interest subvention for farmers engaged in fisheries and animal husbandry
  • 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

  • Farmers paying the loans promptly will be eligible for another three percent discount on the interest rate

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.

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

File image of RBI. AFP

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.

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