Banks told to share interest burden on crop loans
Amid hardening interest rates, the government has ruled out in a easing the subsidy to crop loans and instead asked PSU banks to share the burden of 1 -2% rise in interest rates.
“There is no proposal to raise interest subsidy of 2% on short-term crop loans, We have asked banks to share the burden and provide crop loans up to Rs 3 lakh at 7%,” said a senior finance ministry official. Sources said banks had recently urged the finance ministry to raise interest subsidy on farm loans, but without any success so far.
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