Fact Check: Will there be Zero Interest on Kisan Credit Card loan?

A newspaper screenshot claiming that the Centre is going to offer loans at zero interest has been doing rounds on social media sites. It claimed that the Government of India is providing the said loan under the Kisan Credit Card scheme from April 1.

The news was spreading viral on social media sites and notably on Facebook. This created a lot of confusion among the netizens as they could not find the related information when Googled online.

However, it has now turned out to be a fake news.

The press agency of the Government of India has denied the rumours which claimed that the Centre was offering a loan for zero per cent. "No such decision has been taken by the Central Government," it said in a tweet along and posted the screenshot of the fake news.

In fact, it stated that 7 per cent loan is applicable up to Rs 3 lakh given under Kisan Credit Card.

The Kisan Credit Card scheme is a credit scheme introduced in August 1998 by Indian public sector banks. This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of the RV Gupta Committee to provide advances for agricultural needs.

The scheme entails short-term credit for crops and term loans.