How banks benefit from crop loans? January 8, 2016 Q & A Forum › Category: Banking › How banks benefit from crop loans? 0 Vote Up Vote Down sareddy33 asked 2 years ago How banks will get benefit from crop loans at 7% ROI when base rate is more than 7%?? Question Tags: About crop loans, crop loans 1 Answers 0 Vote Up Vote Down basunivesh Staff answered 2 years ago Sareddy-These are Government backed loans. Any shortfall to such loans will be reimbursed by Government through subsidy. So for banks, it is no loss. They incur loss only when the loan convert to default.