NABARD charging lower interest on agro industries
Updated: Jul 12, 2014 01:10:53pm
New Delhi, Jul 12 (KNN) The National Bank for Agriculture and Rural Development (NABARD) has said it is charging 0.5 per cent less interest rates on activities like production of high value vegetables, cut flowers for up markets and establishment of hi-tech and export oriented horticulture projects.
NABARD has reduced the interest rates on long term refinance facility to banks by 0.20 per cent per annum with effect from June 9, 2014, Minister of State for Finance, Nirmala Sitharaman informed Parliament yesterday.
NABARD has further informed that it has recently introduced a scheme of providing refinance at concessional rate for specific activities under the Plantation and Horticulture like - Production of exotic/high value vegetables under controlled conditions, cut-flowers for up-markets, establishment of hi-tech/export oriented horticultural projects, financing of fruit crops like banana, pine-apple, papaya, etc, cultivation and extraction of essential oils etc, as also for area based schemes for which banking plan has been prepared by banks.
“The rate of interest on these specific activities will be 0.5 per cent less than the applicable rate of interest on refinance charged by NABARD from time to time,” Sitharaman said.
NABARD has also reported that it provides refinance assistance to the banks against their ground level loan disbursements for eligible activities under Priority Sector. Objective of such refinance is to boost capital formation in agriculture and rural economy, which leads to enhancement in ground level credit for agriculture.
As regards mechanism for monitoring and regulating the rate of interest, NABARD has stated that the ground level interest rates are fixed by respective banks since interest rates on loans have been deregulated by Reserve Bank of India, she added. (KNN Bureau)
NABARD has reduced the interest rates on long term refinance facility to banks by 0.20 per cent per annum with effect from June 9, 2014, Minister of State for Finance, Nirmala Sitharaman informed Parliament yesterday.
NABARD has further informed that it has recently introduced a scheme of providing refinance at concessional rate for specific activities under the Plantation and Horticulture like - Production of exotic/high value vegetables under controlled conditions, cut-flowers for up-markets, establishment of hi-tech/export oriented horticultural projects, financing of fruit crops like banana, pine-apple, papaya, etc, cultivation and extraction of essential oils etc, as also for area based schemes for which banking plan has been prepared by banks.
“The rate of interest on these specific activities will be 0.5 per cent less than the applicable rate of interest on refinance charged by NABARD from time to time,” Sitharaman said.
NABARD has also reported that it provides refinance assistance to the banks against their ground level loan disbursements for eligible activities under Priority Sector. Objective of such refinance is to boost capital formation in agriculture and rural economy, which leads to enhancement in ground level credit for agriculture.
As regards mechanism for monitoring and regulating the rate of interest, NABARD has stated that the ground level interest rates are fixed by respective banks since interest rates on loans have been deregulated by Reserve Bank of India, she added. (KNN Bureau)
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