Simple loan scheme for rural households that include Interest Subsidy

 

The central government is working on another loan program, but this time for rural households. The Modi Government could soon launch a new loan scheme that is easy to access that would allow small loans to rural households will be made available at a rate of interest that is subsidized between 4% and 7 %. In the new loan program, rural households would obtain small loans at a lower rate without making a deposit.

 

Under the new plan, loans as high as Rs. 1 Lakh will be made available to rural households with low incomes over the next three to five years. According to the report published in Economic Times, the loans are discounted rates of between 4% and 7% without security collateral. The government a believed to be easing the procedure for obtaining the loan and is currently working on the program’s specifics.

 

There are around 8.5 Crore poor rural households in the country, as according to the Socio-Economic Cast Census, who might require loans of this kind to meet their daily needs.