Union Bank cuts interest rate on agri loans

NEW DELHI: Public sector lender Union Bank of India has announced downward revision in interest rate for different categories under agriculture by up to 175 basis points. Union Bank will be providing crop loans, investment credit and loans for the allied activities by up to Rs 50,000 at base rate only.

The interest rate for lending to self help groups (SHGs) has also been revised by 175 bps. The new interest rates are effective from July 1. Currently, the base rate of Union Bank of India stands at 10.50%.

For the benefit of farmers, Union Bank is extending credit under crop loan up to raise the scale of finance decided by DLTC (District Level Technical Committee).

It also offers 3% interest subvention upfront to the farmers for the repayment of dues for both pre and post harvest finance, for loans up to 3 lakh.

Union Bank has already unveiled a new scheme 'Project Hariyali' to offer extra additional touch points and facilitate the branches to help the farmers.