How much interest subvention is provided to farmers for agriculture and allied activities under Kissan Credit Card Scheme who pay their loans promptly?
In order to provide short term crop loans and short term loans for allied activities including animal husbandry, dairy, fisheries, beekeeping, etc. up to an overall limit of ₹3 lakh to farmers through KCC at a concessional interest rate during the year 2021-22, it has been further continued to provide interest subvention of 2% per annum to lending institutions viz. Public Sector Banks (PSBs) and Private Sector Banks (in respect of loans given by their rural and semi-urban branches only), Small Finance Banks (SFBs) and computerized Primary Agriculture Cooperative Societies (PACS) which have been ceded with Scheduled Commercial Banks (SCBs), on use of their own resources. An additional interest subvention of 3% per annum will be provided to such of those farmers repaying in time, i.e., from the date of disbursement of the loan/s up to the actual date of repayment or up to the due date fixed by the banks for repayment of such loan/s, whichever is earlier, subject to a maximum period of one year from the date of disbursement .
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