Union Bank Cuts Agri Loan Rates by 175 bps

Union Bank of India has reduced interest rates for various categories of loans under the agriculture sector by up to 175 basis points.

This move is aimed at boosting loans to the small and marginal farmers. A basis point is equal to one hundredth of a percentage point.

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 said, interest rate for lending to self-help groups has also been reduced by 175 bps.

The revised interest rates are effective from July 1, 2012.

The public sector bank said it is extending credit under the crop loan scheme up to double the amount fixed by the District Level Technical Committee.

The bank also offers 3 per cent interest subvention upfront to the farmers for their repayment of dues in time for both pre and post harvest finance (for loans up to 3 lakh).