Nitish Kumar, Bihar Chief Minister recently announced that the government would slash the interest rate on its loan to the Bihar State Cooperative Bank (BSCB) by 2%, and asked the bank to pass on the benefit to the 8,463 Primary Agriculture Credit Societies (PACSs) operating in the state.
The state government currently gives loan to BSCB at the interest rate of 9% per annum. The BSCB, in turn, lends money to PACSs at the interest rate of 11% per annum.
“After the government slashes the interest rate by 2%, you should lower the interest rate on loans given to the PACSs to 8%,” the CM said.
Around 1,600 PACSs in the state have defaulted in repayments to the BSCB, it may be mentioned.