Budget: Agro credit target at Rs 8 lakh cr
Union Finance Minister P. Chidambaram on Monday set a target of Rs 8 lakh crore of agriculture credit for the year 2014-15.
Presenting the Interim Budget in the Lok Sabha on Monday, Chidambaram said that the banks will exceed the target of Rs7 lakh crore of agriculture credit fixed for the current yeari.e 2013-14.
The Finance Minister also announced that the interest subvention scheme shall continue in 2014-15.
Under this scheme, a subvention of 2 percent and an incentive for 3 per cent for prompt payment is provided.
This reduces the effective rate of interest on farm loans to 4 per cent. An amount of Rs 23,924 crore has been released under this scheme so far.
(Posted on 17-02-2014)
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