The government has finally realised the need to provide agriculture sector loans at single digit interest rates in tandem with other sector loans.
Agriculture advances were also likely to be more streamlined following recent announcements by the Prime Minister.
This will come as a relief as agriculture advances were hitherto charged in the range of 14-19 per cent vis-a-vis auto and housing loans which attracted interest rates in a range of 9-14 per cent.
Banks have slashed interest rate on agriculture loans down to single digit levels, so that loan recipients in the sector can now get the benefit of the prevailing low interest rate regime.
Agri loans up to Rs 50,000 will now be available to farmers at nine per cent as against the earlier rate of 10.50-11.00 per cent.
