SHILLONG: The state cabinet has approved the interest subvention scheme for farmers in the state holding Kisan Credit Card (KCC).
Chief Minister Conrad Sangma said presently, the farmers are availing KCC loans at an interest rate of 7 per cent. Under this scheme, the state government will provide further two per cent interest subvention in addition to Centre’s existing three per cent, bringing the effective interest for borrowers of KCC loans to two per cent.
The KCC provides short-term loans at an interest rate of four per cent on the condition of timely payment and the interest may be waived up to three per cent if the beneficiary repays the loan promptly. However, in case of late payment, the bank will charge an interest rate of 7 per cent on the loan amount.
This move will have a financial implication of Rs 2.5 crore on the state government every year and it may further increase to Rs 4-5 crore in future, depending on the number of farmers.
“We want to encourage more farmers to take this loan,” Conrad said.
As of now, more than 1.6 lakh farmers in the state are registered under the Kisan Credit Card and around 19,000 of them have procured loans.
Earlier, Agriculture Minister Banteidor Lyngdoh said that two per cent loan repayment is a package from the state government looking to finance those farmers who availed KCC loan.
Lyngdoh had said that very less number of farmers had availed the KCC loan this year, which is otherwise around 40,000 beneficiaries.
