Budget 2010: Crop loan at 5pc interest for farmers

New Delhi, Feb 26: Union Finance Minister Pranab Mukherjee on Friday, Feb 26, offered two percent subvention on short-term crop loan.

Presenting the budget for the year 2010- 2011, Mukherjee announced that the farmers who pay the short term crop loan in time would be eligible for an incentive of additional one per cent interest subvention.

Earlier, the Government offered one percent subvention on short-term crop loan.

In view of the recent drought in some States and the severe floods in some other parts in other country, Mukherjee proposed the extension of the period for repayment of the loan amount by farmers by six months from Dec 31, 2009 to Jun 30, 2010.

The proposed extension would come under the Debt Waiver and Debt Relief Scheme.

The effective rate of interest for such farmers will now be five per cent per annum," he said.

ANI