Patna, Jan 9 (PTI) The Bihar government on Friday signed an MoU with NABARD to provide an additional one per cent interest subvention on loans provided to farmers under the Kisan Credit Card scheme for FY 2025-26, officials said.
The MoU was signed between the agriculture department of Bihar government and National Bank for Agriculture and Rural Development (NABARD) in the presence of the state’s Agriculture minister Ram Kripal Yadav.
According to a statement issued by the government, “Under the agreement, the state government will provide an additional 1 per cent interest subvention under the state scheme, over and above the 3 per cent interest subvention already being offered by the Union government on agricultural loans under KCC.” The benefit will be applicable on crop production loans of up to Rs 3 lakh availed under the KCC scheme from commercial banks, regional rural banks and cooperative banks, the statement added.
It also specified that the incentive will be available only to farmers who repay their loans within the stipulated period.
Officials said that the initiative is expected to boost institutional lending, enhance investment in agriculture and contribute to higher productivity and farm incomes.
For the financial year 2025-26, the state government has earmarked Rs 5 crore towards the 1 per cent interest subvention on agricultural loans, the statement noted. PTI SUK RG
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