1.Banks asked to issue KCC to eligible farmers within 2 weeks of submitting application
v The Centre has directed the concerned banks to issue Kisan Credit Card (KCC) to eligible ones within two weeks of the submission of completed application.
v Currently, there are 6.95 crore active KCCs, under which crop loans are given at subsidised interest rate. KCC has been extended to farmers involved in animal husbandry and fishery activities as well
v Normally, farm loans attract an interest rate of 9 per cent. But the government is providing 2 per cent interest subsidy to ensure farmers get short-term farm loan of up to Rs. 3 lakh at an effective rate of 7 per cent per annum.
v An additional incentive of 3 per cent is being given to farmers for prompt repayment of loans within due date, making the effective interest rate 4 per cent.