New Delhi: In a bonanza to the farming community, the government on Monday announced loans at interest rate of four per cent -- three per cent less than market rate -- for farmers who pay their dues in time and raised the credit target for farm sector by Rs 1 lakh crore.
"The existing interest subvention scheme of providing short-term crop loans at seven per cent interest rate will continue during the 2011-12 fiscal," Finance Minister Pranab Mukherjee said in Budget proposal.
He also said the credit target for the agriculture sector has been increased by Rs 1 lakh crore to Rs 4,75,000 crore.
Also, banks have been asked to focus on farm credit lending to small and marginal farmers, he added....more
12:28 PM, Feb 28, 2011