Government releases to NABARD Rs 11,281 crore for settling farm interest claims

NEW DELHI: The government today said it has released Rs 11,281 crore between April and July to NABARD to pay interest subvention claims to banks for short-term crop loans of up to Rs 3 lakh to farmers.

The Budget 2015-16 had allocated Rs 13,000 crore for implementation of the Interest Subvention Scheme for short term crop loans up to Rs 3 lakh, said a statement by the Finance Ministry.

"The government has already released Rs 11,281.16 crore during the first four months of the current financial year, to RBI/NABARD, for payment of interest subvention claims to banks towards implementation of Interest Subvention Scheme of the government for short term crop loans to farmers," it added.

The Cabinet had last week extended the scheme to banks to ensure availability of crop loans of up to Rs 3 lakh to farmers at 7 per cent per annum.

It gave 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 cent per annum during 2015-16.

For 2015-16, the target of agriculture credit has been raised to Rs 8.50 lakh crore, from Rs 8 lakh crore in 2014-15.