National Bank for Agriculture and Rural Development (Nabard), the apex body for agricultural credit, on Monday said that it had brought down the interest rate at which it lends to regional rural banks (RRBs) and commercial banks by 50 basis points.
It would effectively bring down the interest rates on the loans availed by borrowers in rural India from these financiers.
It has been done “keeping in view the money market conditions, the macro economic scenario and the need for promoting capital formation in rural areas,” said Nabard in a statement released on Monday.
The new interest rate for the commercial banks is now 9 per cent per annum while for the co operative banks and RRBs it is 8.5 per cent.
Nabard has also given special relaxation of an additional 50 basis points to the commercial banks in the North East region, hill states and Andman and Nicobar Islands.