Cabinet Decision: 1.5% rebate in interest on short-term agricultural loans, ECLGS increased by Rs 50 thousand crores, know the benefit

Posted on 18th Aug 2022 by rohit kumar

The Central Government has made a big announcement to give relief to the farmers. After the cabinet meeting, the Emergency Credit Line Guarantee Scheme (ECLGS) outlay was increased by Rs 50,000 crore to Rs 5 lakh crore. This information has been given by the Union Information and Broadcasting Minister (I&B Minister) Anurag Thakur. He said that the cabinet has also approved an interest subvention of 1.5 percent on short-term agricultural loans up to Rs 3 lakh.

 

We are giving priority to farmers from day one: Anurag Thakur

 

Giving information about the decisions of the cabinet, the Union Minister said, 'We are giving priority to the farmers from day one. Farmers get a loan of Rs 3 lakh on a credit card for a short period. Interest is to be paid on it at the rate of seven percent. If farmers pay it on time, they get a rebate of three percent. That is, farmers have to pay interest only at the rate of four percent.

 

 

The Union Minister said that farmers get this facility from different banks like small-big and regional-rural. In May 2020, banks were stopped from getting the help of a two percent rebate from the government because the interest rates were low then.

 

Repo rate hike does not affect farmers' loans

 

Now RBI has increased the repo rate twice. In order not to burden the farmers with much interest rates or the banks which give loans to farmers at an interest rate of seven percent, the government has decided that it will help one and a half percent in the interest rate. This help will be from the financial year 2022-23 to 2024-25. Farmers will continue to get loans at the rate of seven percent as before.

 

Also Read: Finance Ministry: Preparing to end the exemption tax system, Finance Ministry will review the old tax system

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