The government has released Rs 11,281.16 crore during the first four months of the current financial year to NABARD, for payment of interest subvention claims to banks towards implementation of Interest Subvention Scheme for short term crop loans of up to Rs 3 lakh to farmers. The government in its Budget 2015-16 had allocated Rs 13,000 crore for implementation of the Interest Subvention Scheme.
The Cabinet had given approval to continuation of interest subvention to public as well as private banks, regional rural banks, cooperative banks and NABARD to enable them to provide short-term crop loans of up to Rs 3 lakh to farmers at 7% per annum during 2015-16.
The target of agriculture credit for 2015-16, has been raised to Rs 8.50 lakh crore, from Rs 8 lakh crore in 2014-15.