Mumbai, July 19: In a bid to increase credit flow and pass on the benefit of declining interest rates to farmers, State Bank of India (SBI) has reduced the interest on short term agriculture loans of up to one year by 0.5 per cent at 8.75 per cent effective July 15. The new rate is 1.75 per cent below the bank's prime lending rate, SBI said in a release on Saturday.
Bank officials said the decision to reduce the rate is in consonance with the government's desire to help the farming community, which contributes significantly to the country's economy. Bureau Report