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    Question

    What is the effective interest rate for farmers who

    avail both the Prompt Repayment Incentive (PRI) and standard interest subvention under the KCC scheme?
    A 2% per annum Correct Answer Incorrect Answer
    B 3% per annum Correct Answer Incorrect Answer
    C 4% per annum Correct Answer Incorrect Answer
    D 5% per annum Correct Answer Incorrect Answer
    E No subvention Correct Answer Incorrect Answer

    Solution

    The Government of India provides an interest subvention of 2% per annum with an additional 3% for prompt repayment, effectively reducing the interest rate to 4%.

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