Those farmers who repay crop loans immediately are given additional interest subsidy at the rate of ________% by the Government of India.

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  1. 7%
  2. 3%
  3. 4%
  4. 2%

Answer (Detailed Solution Below)

Option 2 : 3%
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Detailed Solution

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The Correct Answer is 3%.

 Key Points

  • Those farmers who repay crop loans immediately are given additional interest subsidies at the rate of 3%.

 Important Points

  •  Interest subsidy is a benefit that the government provides by paying off some or all of your loan interest.
  • Since the year 2009-10, the Government of India introduced an additional subvention of 1% to farmers as an incentive for repaying the loans promptly i.e. on or before the due date or the date fixed by the bank, subject to a maximum period of one year. It has been increased to 2% for 2010-11 and 3% from 2011-12.
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