1.5% interest rebate per annum on short-term agricultural loans up to Rs.3 lakh

The central government will provide 1.5 percent interest rebate per annum on short-term agricultural loans up to Rs.3 lakh. The Union Cabinet meeting chaired by Prime Minister Narendra Modi has approved the proposal of 1.5% interest rebate for all lending institutions.

Agricultural

Agricultural

After this decision, primary agricultural societies affiliated to government banks, private banks, small finance banks, regional rural banks, cooperative banks and commercial banks will get interest concession of one and a half percent per annum. The financial lending institutions will provide this 1.5% interest discount facility to the farmers.

Interest rebate

This concession will be available from 2022-23 to 2024-25 financial year. It is estimated that 34 thousand 856 crore rupees will be spent on interest waiver facility.