123
had been governed by the PLRs of each bank until the introduction of the base
rate.
----- Interest Subvention Scheme
In this respect, it may be recalled that a scheme of interest subvention
began towards the end of March 2006. As per this scheme, an amount equal to
two percentage points of the borrower’s interest liability on the principal amount
up to
`
One lakh was credited to his/her bank account before March 31, 2006.
As per the Union Budget for 2006-07, Government had decided to ensure,
effective the kharif operations of 2006-07, that the farmer received short-term
credit at 7% up to a loan amount of
`
3 lakh on the principal amount. This
was sought to be done by providing a certain level of subvention to NABARD
(about 2% subvention for each farmer). This 2% subvention scheme for short-
term crop loans has been continued in 2007-08 and thereafter each year up to
Table 4.34: Occupation-wise Weighted Average Lending Rates
Years (End-March)
Agriculture
Industry
Total
1990
12.80
15.3
14.6
1991
13.50
15.7
15.0
1992
15.00
17.6
16.7
1993
15.80
17.8
17.0
1994
15.60
17.4
16.6
1995
15.50
16.6
16.1
1996
15.90
17.9
17.2
1997
15.90
17.6
17.0
1998
15.40
16.9
16.4
1999
15.40
15.6
15.6
2000
14.96
15.1
14.9
2001
14.58
14.7
14.3
2002
14.05
14.2
13.8
2003
13.54
14.0
13.5
2004
13.30
13.7
13.3
2005
12.73
13.5
13.0
2006
11.96
12.9
12.2
2007
11.90
12.6
12.1
2008
11.93
12.7
12.5
2009
11.08
11.4
11.6
2010
10.06
10.5
10.6
Notes:
(i) For years March 1990 to March 1998, data on outstanding credit relate to accounts, each with
credit limit of over
`
25,000. (ii) For years March 1999 and thereafter, data on outstanding credit relate to
accounts, each with credit limit of over
`
2 Lakh.
Source:
(i) Data for the period up to 2000 have been calculated by EPWRF from the RBI’s Basic Statistical
Returns. (ii) Data for the period 2002 onwards, see RBI: Statistical Tables Relating to Banks in India 2011-
12 and earlier issues. Such weighted average of lending rates has been published by the RBI for the first
time in the Statistical Tables of 2002-03 (page 117).
