Crop Loan Interest Subvention Scheme 2019.
Women SHG interest Subvention program proposed to be expanded to all districts.
Banks must submit the claims for 3% additional Subvention on the same portal.
Percent interest Subvention for all GST registered MSMEs, on fresh or incremental loans.
In those cases where Subvention is available to borrowers, it is clarified as under:.
Public Sector Banks should also submit the claims for 3% additional Subvention on the same portal.
The interest Subvention scheme on credit to women SHG during 2017-18
is applicable in 250 districts across the country.
It provides interest Subvention of two per cent per annum to banks on use of their own resources.
The Subvention will be available to banks on the condition
that they make SHG credit available at 7% per annum.
This Subvention will be available to all the banks on the condition
that they make SHG credit available at 7% annually in the 250 districts.
If the yield to the bank(after including Subvention) is lower than the Base Rate,
such lending will not be construed to be violative of the Base Rate guidelines.
A definite formula has to be devised to determine the extent of
cross subsidisation, direct Subvention by the Government and the extent to which both of these can be
reduced over a period of time.
We certify that the above loans for which the claim is being made were repaid in time and
the benefit of additional 3 percent incentive Subvention has already been passed on to the account holders,
thereby bringing down the interest rate for such farmers to 4 per cent per annum for short term production credit up to Rs.3 lakh disbursed during 2017-18 for these farmer.