Apex rural development bank in India, National Bank for Agriculture and Rural Development has slashed benchmark prime lending rates by 100 basis points on loans disbursed under the investment credit refinance scheme.

The rate changes will affect commercial banks, co-operative banks and regional rural banks.

The revised rates were stated to be applicable 15 July onwards.

Umesh Chandra Sarangi, Chairman, NABARD, said, "The new rate for investment credit refinance is 8.5 per cent for commercial banks and 8 per cent for co-operative banks and RRBs,"

Earlier, the rates under investment credit refinance scheme for commercial banks was 9.5 percent, while that for co-operative and regional rural banks was 9 percent.

Sarangi also said that the short-term crop loans disbursement is expected to at Rs.21,000 crore, which is a 30 percent increase over the previous fiscal.

The investment credit, which is given for the development of agri- infrastructure, is expected to grow to Rs.12,500 crore in 2009-10.

Explaining the demand, Sarangi said, "We don't see any dip in agri-loans in the country as we believe farmers are ready with alternative crops in places where there has been inadequate rain till now."