Farmers in Madhya Pradesh will get farm loans at 3 per cent interest from April 1, the chairman of the Apex, the state-level central cooperative bank, has announced. The bank has already started giving loans at 5 per cent. Chairman Bhanwar Singh Shekhawat claimed that the state was the first to provide farm loans at 5 per cent.
The ruling BJP had in its manifesto for the last Assembly elections announced that it would further reduce the interest on farm loans for the benefit of the farmers. Shekhawat said the bank has made a provision of Rs 400 crore to bear the future losses cooperative banks will suffer after disbursing cheap loans.
