Short term cultivation loans are being granted for the farmers in North and East for the forthcoming Maha season.
800 million rupees has been allocated for this purpose. The loans are being issued with a 14 percent interest. The Government is paying six percent of the interest while the farmers have to pay only eight percent.
The Central Bank points out that the low interest rate is a notable feature. The loans will be provided through the State and Private banks in the North Eastern areas.