To what level does the effective loan interest rate for a PACS fall under the Plan?
- A.1 per cent
- B.3 per cent
- C.4 per cent
- D.7 per cent
Show answer
The Plan uses NABARD's special refinance facility to lighten the burden on participating cooperatives, and when that is combined with the 3 per cent interest subvention available under the Agriculture Infrastructure Fund, the effective loan interest rate for a PACS comes down to 1 per cent.
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