Cooperative Credit System.

Press Information Bureau

Government of India

Ministry of Finance

04-May-2012 16:51 IST

Cooperative Credit System

The Interest Subvention Scheme is being implemented by the Government of India since 2006-07 to make short term crop loans upto Rs. 3 lakh for a period of one year available to farmers at the interest rate of 7% per annum. Interest Subvention is provided to Public Sector Banks, Regional Rural Banks and Cooperative Banks to meet the difference between the cost of their own funds and the lending rates on such loans. The Government has released Rs.1356.64 crore to cooperative banks through NABARD towards Interest Subvention between 2006-07 and 2010-11.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

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