Reserve Bank has made Aadhar linkage mandatory for farmers who wish to avail short-term crop loans in 2017-18. In a notification issued from Mumbai, RBI has advised banks to make Aadhaar linkage compulsory to ensure hassle-free benefits to farmers under the Interest Subvention Scheme.


RBI has clarified that farmers can avail of short-term crop loans of up to 3 lakh rupees at subsidised interest rate of 7 percent that could go down to 4 percent on prompt repayment.  Meanwhile, in order to discourage distress sale and encourage farmers to store produce in warehouses, banks will provide subvention benefit to small and marginal farmers with Kisan Credit Cards for a further period of up to 6 months post-harvest.

Interest Subvention Scheme will help farmers getting short term crop loan up to Rs. 3 lakh payable within one year at only 4% per annum.  The Government has earmarked a sum of Rs. 20,339 crore for this purpose. The interest subvention will be given to Public Sector Banks (PSBs), Private Sector Banks, Cooperative Banks and Regional Rural Banks (RRBs) on use of own funds and to NABARD for refinance to RRBs and Cooperative Banks.



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