Crop loan refinancing to reap good harvest this year

Crop loan refinancing is set to jump 54% on a planting surge, following bountiful monsoon that prompted the Nabard to seek more govt funding. Nabard has requested the finance ministry to raise the government budget on interest subvention to match the higher demand and it is expected that the government may need to raise the subvention amount for Nabard to around 2,000crore from 1,300 crore estimated in February. Unless Nabard will get the required government support, it will be in difficulty to cater to the rising demand for crop loan refinance, especially from co-operative banks.