Union Budget announces additional subvention of interest for farmers

The Minister of Finance Shri Pranab Mukherjee while presenting the budget 2009-10 in Lok Sabha today stated that the target for the agriculture credit flow for the year 2009-10 is being set at Rs. 3,25,000 crore. Agricuture credit flow for the year 2008-09 was Rs. 2,87,000/- crore.

To achieve this, the Union Minister of Finance proposed to continue the interest subvention scheme for short term crop loans to farmers for loans up to Rs. 3 lakh per farmer at the interest rate of 7% per annum. He also announced an additional subvention of 1% as an incentive to those farmers who pay their short term crop loans on schedule. The interest rate for these farmers could come down to 6% per annum. An additional budget provision of Rs. 411 crore over interim Budget has been earmarked for the purpose.

Source : Equity Bulls

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