The Mumbai based Union Bank of India, slashed interest rates on various schemes in agriculture segment by up to 175 basis points. The rates have been slashed as a measure to improve credit flow in the segment.
The bank issued a statement which said that from July 1 onwards, the bank would provide crop loans, investment loans and loans for agriculture related activities up to Rs. 50,000 at an interest of 10.50 percent, which is the bank's base rate.
The statement also mentioned that the interest rates on advances provided to self help groups have been slashed by 175 basis points.
To provide farmers further assistance, Union bank provides farmers a 3 percent interest subsidy on timely repayment of loans up to 3 lakhs, for pre harvest finance and post harvest finance.
In order to expand its reach in the segment, additional touch points were provided under the bank's scheme called ‘Project Hariyali'. The project also helped the bank's branches to come in contact with farmers by taking help from business facilitators.