RBI To Continue Interest Grants On KCC Crop Loan Till FY25

The farmers repaying loans on time will get the benefit of an additional three per cent subsidy. The Indian government has given approval for the continuation of the Interest Subvention Scheme (ISS) with modification for the financial years 2022-23 and 2023-24

The Reserve Bank of India (RBI) said that the rate of interest for short-term loans up to Rs 300,000 through Kisan Credit cards (KCC) will be seven per cent and 1.5 per cent for interest subsidy, for the current financial year (FY23) and upcoming financial year (FY24), on 23 November.

The farmers repaying loans on time will get the benefit of an additional three per cent subsidy. Therefore, the interest rate that farmers will be charged with will be four per cent.

These loans will be given as the short-term crop loans and short-term loans for allied activities such as animal husbandry, dairy, fisheries, beekeeping etc.

The Indian government has given approval for the continuation of the Interest Subvention Scheme (ISS) with modification for the financial years 2022-23 and 2023-24, said RBI.

The subvention will be provided to lenders such as Public Sector Banks (PSBs) and Private Sector Banks (rural and semi-urban branches), Small Finance Banks (SFBs) and computerized Primary Agriculture Cooperative Societies (PACS) considering use of their own resources, it added.