an in in ndia 12.43
through refinance route (through the There is no fixed interest rate in this
Public and private sector banks, NBFCs, scheme. As per the Government of India,
MFIs, RRBs, District Banks, etc). presently, banks are charging the interest
The products designed under it are rates between Base Rate plus one per cent
categorized into three buckets of finance
to 7 per cent per annum. Interest rates on
named Shishu (loan up to Rs. 50,000),
the loans are supposed to vary according
Kishor (Rs. 50,000 to Rs 5 lakh) and
Tarun (Rs. 5 lakh to Rs. 10 lakh). the risk involved in the enterprises seeking
Though the scheme covers the traders of loans. There is no general subsidy offered
fruits and vegetables, in general, it does on interest rates except if the loan is linked
not refinance the agriculture sector. to some other government scheme.