Centre to provide interest subvention

In a bid to prevent distress sale by farmers, the Union Govt. will provide interest subvention at two per cent per annum to banks in respect of short term crop loans upto 

3 lakh extended to farmers during 2011-12. This is subject to the condition that they lend such loans at ground level initially at seven per cent. In a release, Lalitha Venkatesan, Chief General Manager, National Bank for Agriculture and Rural Development (NABARD), Chennai, stated that in addition, the centre would provide interest subvention at three per cent to those farmers who promptly repay their short-term production credit dues (crop loans upto 3 lakh) on/ before due date fixed by bank.

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