File photo of Prime Minister Narendra Modi. (Agence France-Presse)
The union cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved a scheme for interest subvention for public sector banks, private banks, cooperative banks, regional rural banks and NABARD for providing short-term crop loan to farmers, sources said.
They said this will enable these banks to provide short-term crop loans of up to Rs.3 lakh to farmers at 7 per cent per annum during 2015-16.
The sources said the cabinet decided to provide interest subvention to small and marginal farmers having Kisan Credit Cards for loans against negotiable warehouse receipts post-harvest at 7 percent per annum interest for six months.