Government has approved two percent interest subsidy on farm loans and additional three percent for timely repayments. A decision in this regard was taken during the Cabinet meeting in New Delhi today. <br/><br/>This interest subvention scheme will provide a big relief to debt ridden farmers. The decision has come in the back drop of protests by the farmers in different states for loan waivers. The scheme will apply to short term crop loan upto three lakh rupees.