Union Bank of India has reduced interest rates for various types of loans in the agriculture sector by up to 175 basis points (bps).
This move is aimed at boosting loans to the small and marginal farmers, the bank said.
Crop loans, investment credit and loans for allied activities up to Rs 50,000 will be available at the Base Rate (10.50 per cent).
The bank, in a statement, said interest rate for lending to self-help groups (SHGs) has also been reduced by 175 bps. (A basis point is equal to one hundredth of a percentage point.)
The revised interest rates are effective from July 1, 2012.
The public sector bank said it is extending crop loans up to double the amount fixed by the DLTC (District Level Technical Committee).
The bank is also offering 3 per cent interest subvention upfront to farmers for repaying dues in time for both pre- and post-harvest finance (for loans up to Rs 3 lakh).