New Delhi, July 27: Announcing yet another major relief to farmers, Prime Minister Atal Bihari Vajpayee today said the rate of interest on agricultural loans upto Rs two lakh will now be below the prime lending rates (PLRs) of banks and promised many such "unprecedented moves". "Crop loans below Rs 50,000 will be charged nine per cent interest and banks are being asked to charge the rate of interest below their PLRs for agricultural loans upto Rs two lakh," Vajpayee said at a function organised by the farmers at his residence.

While announcing a nine per cent interest rate on loans upto Rs 50,000, earlier this month, government had said loans above this amount would attract an interest rate of PLR plus 2.0 per cent.

Commenting on Agriculture Minister Rajnath Singh's description of the lowering of interest rate on farm loans as an "unprecedented" move, Vajpayee said "in future we will take many such unprecedented decisions". Vajpayee said farmers will benefit by around Rs 2,500 crore by these interest rate cuts affected by the Centre.

He said so far interest on farm loans has been too high at 14-18 per cent. "How will a farmer work when cost of credit is too high"? cars are available at much lower interest and there is tax exemption on purchase of consumer goods, he said.

The Prime Minister said now that the relief has been announced, it must be ensured that its benefit reaches the targeted populace. Giving a call against giving bribes, he said, "karze ke liye dakshina nahin deni chahiye". Bureau Report