New Delhi: The Government has set the target for the agriculture credit flow for 2009 to 2010 at Rs 3,25,000 crore, Finance Minister Pranab Mukherjee announced on Monday.
Presenting the Budget in the Lok Sabha, he said the agriculture credit flow for 2008 to 2009 was Rs 2,87,000 crore.
To achieve this, Mukherjee proposed to continue the interest subvention scheme for short term crop loans to farmers for loans up to Rs 3 lakh per farmer at the interest rate of seven per cent per annum.
He also announced an additional grant of one per cent as an incentive to those farmers who pay their short term crop loans on schedule. The interest rate for these farmers could come down to six per cent per annum.
An additional budget provision of Rs 411 crore over interim Budget has been earmarked for the purpose.
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