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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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