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Informist, Tuesday, Aug 6, 2024

 

MUMBAI – The government has approved the continuation of the modified interest subvention scheme availed through the Kisan Credit Card in the current financial year ending March, the Reserve Bank of India said today.

 

The lending rate to farmers will be 7% and the rate of interest subvention to lending institutions will be 1.5%, as was the case in the last two financial years, the RBI said in a notification.

 

The interest subvention will be calculated on the loan amount from the date of disbursement up to the date of actual repayment of the loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier, subject to a maximum period of one year, the RBI said. 

 

An additional subvention of 3% per annum will be provided to those farmers who repay in time, subject to a maximum period of one year from the date of disbursement, the notification said.

 

This would mean that the farmers repaying promptly would get short-term crop loans or for allied activities including animal husbandry, dairy, fisheries, and beekeeping at 4% per annum during 2024-25, the notification said.

 

"This benefit would not accrue to those farmers who repay their agri loans after one year of availing such loans," the notification said. The remaining guidelines remain unchanged for the current financial year.

 

The RBI asked banks to maintain category-wise granular data of individual farmer beneficiaries under the scheme and report it on the Kisan Rin Portal to settle the audited Modified Interest Subvention Scheme claims for the year 2024-25. They also need to upload the claims or additional claims certified by their statutory auditors on the Kisan Rin Portal for 2024-25 by Jun 30, 2025, the notification said.  End

 

Reported by Kshipra Petkar

Edited by Saji George Titus

 

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