Agricultural Loans: Farmers to pay only 3% interest on this type of loan—find out the conditions..

Farmers in Bihar have received a significant boost. A provision has been made to provide loans of up to ₹3 lakh to farmers at an interest rate of 3%. To facilitate this, the Bihar government has signed a Memorandum of Understanding (MoU) with NABARD. Under this arrangement, the state government will provide an additional 1% subsidy on agricultural loans. However, this does not apply to all agricultural loans; it covers specific essential agricultural loans that will carry an interest rate of just 3%. A condition applies: the subsidy benefit is available only if the loan is repaid on time.

**How ​​the 3% interest rate is calculated**