What is the actual KCC interest rate after subvention on a Rs 2 lakh crop loan?

On a crop loan amount up to Rs 3 lakh, the widely known effective rate works out to about 4 percent per year for farmers who repay on time, so on Rs 2 lakh you fall within that cheap band. The card rate the bank prints is higher, often 7 percent or more, but the government gives an interest subvention to the bank and a separate prompt repayment incentive to you, and together they bring the effective rate to around 4 percent. The catch is the word prompt. You get the lowest rate only if you clear the drawn amount within the due period, usually one year. Miss it and you pay the full card rate plus penal interest. Also remember the cheap rate applies only up to the eligible ceiling; any amount above that is at the normal rate. These numbers are revised by the government from time to time, so confirm the current card rate, subvention and incentive with your branch before fixing your repayment plan.