By IANS,
New Delhi : The government Thursday approved a proposal to continue interest subvention to public sector banks (PSBs), regional rural banks (RRBs), cooperatives banks and NABARD to enable them to provide short-term crop loans up to Rs.3 lakh to farmers at 7 percent during 2012-13.
According to the scheme approved by the cabinet, the benefit will be given to the farmers who repay on time, that is within one year of disbursement, their short-term crop loans taken during 2012-13.
The scheme will also permit the release of Rs.10,901 crore as interest subvention for 2012-13 of which Rs.3,267 crore will go to NABARD for refinancing cooperatives banks and RRBs and Rs.7,634 crore to PSBs, RRBs and cooperative banks for subvention on their own funds.