Interest subsidy on Kisan Credit Card will continue till FY24

24 Nov 2022 , 12:01 PM

The Reserve Bank of India (RBI) said on Wednesday that for the current fiscal year (FY23) and the following fiscal year, the interest rate for short-term loans up to Rs 300,000 made through Kisan Credit Cards (KCC) will be 7%, and the interest subsidy will be 1.5%, respectively. Farmers that promptly repay their loans will receive an additional 3% subsidy. As a result, these farmers will pay an interest rate of 4%.

These loans will be short-term loans for crops as well as short-term loans for related activities, including dairy farming, fishing, beekeeping, and another animal husbandry. According to the RBI, the continuation of the Interest Subvention Scheme (ISS) with modifications for the fiscal years 2022—2023 and 2023—2024 has received approval from the Indian government.

According to the statement, the subvention will be given to lenders such as computerized Primary Agriculture Cooperative Societies (PACS), Public Sector Banks (PSBs), and Private Sector Banks (rural and semi-urban branches).

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