The Reserve Bank of India on Wednesday said banks would give short- term crop loans at four per cent to only those farmers who make repayments in a one- year period. Keeping with the budgetary announcement ( 2013- 14), the government will give two per cent interest subsidy for short- term crop loans up to Rs. 3 lakh, provided banks lend at seven per cent. Also, it will give three per cent interest subvention to farmers who repay loans promptly, within the maximum period of a year from the date of disbursement.

Source : http://www.taxmann.com/topstories/222330000000002117/rbi-lays-out-crop-loan-rules.aspx

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