Cabinet approves interest subvention of 1.5 per cent per annum on Short Term Agriculture Loan upto Rs 3 lakh


Cabinet has approved interest subvention of 1.5 percent on Short Term Agriculture Loan upto three lakh rupees.

Information and Broadcasting Minister Anurag Thakur said the decision has been taken to ensure adequate credit flow in agriculture sector.

He said the interest subvention of 1.5 percent will be provided to lending institutions i.e. banks, by the government. This increase in Interest Subvention support requires additional budgetary provisions of 34 thousand 856 crore rupees for the period of 2022-23 to 2024-25 under the scheme.

Kisan Credit Card (KCC)

The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian public sector banks to issue kisan credit card to the farmers of India. This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of the R. V. Gupta Committee to provide advances for agricultural needs.

Its objective was to meet the comprehensive credit requirements of the agriculture sector and by 2019 for fisheries and animal husbandry by giving financial support to farmers.

Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks. The scheme entails short-term credit for crops and term loans.

KCC credit holders are also covered under personal accident insurance up to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risks.

The premium is borne by both the bank and the borrower in a 2:1 ratio.  The validity period is five years, with an option to extend it up to three more years.

Kisaan Credit Card (KCC) credit to the farmers is of two types –

  1. Cash Credit (for working capital)
  2. Term Credit (for capital expenditure such as the purchase of cattle, pump sets, land development, plantation, drip irrigations, etc.

Apart from this, Government has also approved enhancement of limit of Emergency Credit Line Guarantee Scheme by 50 thousand crore rupees for Travel, Tourism and Hospitality sector. Hospitality and related sectors will get a boost from this decision. The increase has been done due to the severe disruptions caused by COVID pandemic on hospitality and related enterprises.

━ related

Government Establishes the Accelerated Corporate Exit Processing Centre to Streamline Business Dissolution Procedures

Aiming to simplify and expedite the process of corporate dissolution, the government introduces the Accelerated Corporate Exit Processing Centre. Learn about the significance of this initiative and how it will benefit businesses and the overall economy.

Kiren Rijiju Steps Down as Union Law Minister, Marking the End of an Era

In a surprising development, Kiren Rijiju has announced his resignation as the Union Law Minister, bringing an end to his impactful tenure. Explore the achievements and highlights of Rijiju's time in office and the potential implications of his departure.

Hinduja Group Chairman SP Hinduja Passes Away, Leaving Behind a Legacy of Business Excellence

The business world mourns the loss of SP Hinduja, the Chairman of the Hinduja Group, who has passed away. Explore the remarkable life and contributions of this visionary leader and the lasting impact he leaves behind.

Nepali Climber Sets New Record with 27th Ascent of Mount Everest

A remarkable achievement in mountaineering history as a Nepali climber conquers Mount Everest for the 27th time, establishing a new record. Learn more about this extraordinary feat and the perseverance of this seasoned mountaineer.

Global Accessibility Awareness Day 2023: Promoting Inclusion and Digital Accessibility

Global Accessibility Awareness Day (GAAD) 2023 marks a significant milestone in raising awareness about the importance of accessibility and inclusion in the digital world. Discover how this global event is making a positive impact on people's lives and promoting a more inclusive society.