Question
According to the RBI recent announcement, the farmers
who repay loans promptly under the Kisan Credit cards scheme will get an additional ___ % subsidy.Solution
The farmers who repay loans promptly will get an additional three percent subsidy. Thus, the interest rate charged to these farmers will be four percent. The Kisan Credit Card (KCC) Scheme was introduced in the year 1998 with the objectives of providing adequate and timely credit to the farmers for their agricultural operation. The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum.
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