The government will take special efforts to ensure adequate credit flow to underserved areas — the eastern states and J&K, he added.
The government provides short-term crop loans up to Rs 3 lakh at subsidised interest rate of 7 per cent per annum. An additional incentive of 3 per cent is provided to farmers for prompt repayment of loans within due date, making an effective interest rate for them at 4 per cent.
