Union Finance Minister P Chidambaram on Thursday said the agricultural credit target has been increased to Rs. 7 lakh crores from the earlier Rs. 5.75 lakh crores.
In the budget for 2013-14 presented by Chidambaram in Lok Sabha, the short-term crop loan scheme (Interest Subvention Scheme) has been extended to the crop loans borrowed from private sector scheduled commercial banks in respect of loans given in the service area of the branch concerned.
Earlier the scheme was applicable to loans extended by the Public Sector Banks, Regional Rural Banks (RRBs) and Co-operative Banks.
Under this Interest Subvention Scheme, a farmer will be able to get loans at 4 per cent per annum if he repays the short-term crop loan on time.