First-ever interest subvention scheme for cooperative loans set to benefit farmers


The first-ever interest subvention scheme for long-term cooperative agricultural and non-agricultural loans launched by the Bharatiya Janata Party (BJP) government in Rajasthan is set to enhance the farm output and increase farmers’ income. Farmers will get 7% interest subsidy on agricultural loans and 5% on non-agricultural loans on the repayment on time.

The cooperative loans are generally obtained for deepening of tube wells, drip irrigation, land levelling, greenhouse and solar plants, vermicompost production, silkworm rearing and beekeeping. Minister of State for Cooperative, Gautam Kumar Dak, said here on Saturday that the scheme aimed at giving the maximum loan facility to the farmers to meet their requirements.

Under the Sahakar Kisan Kalyan Yojana, the farmers have been taking loans from the primary cooperative land development banks and Central cooperative banks in the State. Mr. Dak said the new scheme would encourage the farmers to pay their loan instalments on time.

A provision of ₹39.75 crore has been made for interest subsidy during the current financial year. The farmers who get seven% subsidy will pay the interest at the rate of only four% on the loans, while those getting 5% subsidy will pay the interest at the rate of 3.5%.

The Minister said the cooperative banks would be able to disburse agricultural and non-agricultural loans to more farmers with the introduction of the scheme. The Cooperative Department had earlier this month announced a one-time settlement scheme to recover the loan amount from defaulters who were unable to repay the debt for various reasons.



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