The government will release Rs 10,901 crore to state-run banks to enable interest subvention for short-term crop loans up to Rs 3 lakh to farmers for the current financial year. On Thursday’s cabinet meeting, chaired by the Prime Minister, decided this.

Public sector banks (PSBs) provide such a subvention to enable short-term crop loans at seven per cent interest. Also, a three per cent subvention is given to those who start repaying their loans within the first year of disbursal.