Anurag Thakur, a Union minister, stated on Wednesday that the Cabinet has decided to grant a 1.5% annual interest subsidy on short-term loans for agriculture up to Rs. 3 lakh.
According to Union Minister Anurag Thakur, the choice has been made to maintain enough credit flow in the agricultural sector. For the financial years, 2022-23 to 2024-25, lending organisations (public and private sector banks, small finance banks, regional rural banks, cooperative banks, and computerised Primary Agriculture Credit Societies) will receive the 1.5% interest subvention to provide farmers with short-term Agri loans of up to 3 lakh.
“This increase in Interest Subvention support requires additional budgetary provisions of Rs 34,856 crore for the period of 2022-23 to 2024-25 under the scheme,” stated the official statement.
The rise in interest subvention will safeguard the lending institutions’ financial stability and viability as well as the sustainability of loan flow in the agricultural sector.
The Union Cabinet also authorised increasing the Emergency Credit Line Guarantee Scheme (ECGLS) budget from Rs 50,000 crore to Rs 5 lakh crore, with the extra money going toward businesses in the hospitality and associated industries.
To aid the hospitality industry affected by the coronavirus epidemic, a proposal to increase the ECLGS ceiling from Rs 4.5 lakh to Rs 5 lakh crore was included in the Union Budget for 2022–23.
According to Thakur, who briefed the public on the Cabinet’s numerous choices, the increase in the amount was made as a result of the pandemic’s severe disruptions in the hospitality and allied industries.
According to him, loans of around Rs 3.67 lakh crore will be approved under the ECLGS till August 5, 2022.
The hospitality, tourism, and associated industries will benefit from this.
These are the industries, according to Thakur, that need capital investments.
“Cabinet approves widening access of the Traditional Knowledge Digital Library database to users besides patent offices,” said Thakur discussing Cabinet’s other decision.