The central authorities has lowered the rate of interest on short-term agricultural loans as much as Rs 3 lakh from two to at least one and a half %. Two % curiosity concession was allowed until 2020. The motion was taken on the Union Cupboard assembly chaired by Prime Minister Narendra Modi on Wednesday. From the present yr to 2024-25, just one and a half % curiosity discount. The federal government claims that the rate of interest restrict has been mounted contemplating the present repo charges and many others.
The primary UPA authorities, which dominated with the assist of the Left, began granting curiosity concessions on short-term farm loans to supply reduction to farmers. A two % curiosity discount was introduced with the intention of offering loans to farmers at seven % rate of interest. The federal government will switch an quantity equal to 2 % curiosity to the banks. Three % extra curiosity concession shall be given to those that repay accurately. This too shall be supplied by the Centre. With this, the rate of interest shall be lowered to solely 4 % for many who repay accurately.
Modi authorities is implementing this scheme until 2020 with a change within the title of revised curiosity concession. There shall be a big drop within the quantity transferred by the Heart to the banks. Earlier, if the middle had transferred an quantity equal to 5 %, now it will likely be 4 and a half %.
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