Budget 2025: What is subvention and how does it work?

The government provides financial aid called subvention to reduce loan interest. This helps farmers access affordable loans. The Interest Subvention Scheme assists farmers with short-term loans at lower rates. This scheme supports rural livelihoods. It covers the Kharif season from 2006-07 through 2024-25. The government also helps farmers after natural disasters by covering interest on restructured loans.