Rajasthan Launches Interest Subvention Scheme for Farmers

November 11, 2024

The Rajasthan government has introduced a groundbreaking interest subvention scheme. This initiative is designed to support farmers by enhancing their financial accessibility. The scheme provides important interest subsidies on both agricultural and non-agricultural loans. It aims to boost farm productivity and increase farmers’ income.

Interest Subsidy Details

Farmers will receive a 7% interest subsidy on agricultural loans. For non-agricultural loans, the subsidy stands at 5%. This incentive applies if farmers repay their loans on time. The effective interest rate for those qualifying for the 7% subsidy will be 4%. Meanwhile, the 5% subsidy will reduce the interest to 3.5%.

Loan Utilisation

The cooperative loans serve various agricultural purposes. They can be used for deepening tube wells, installing drip irrigation, and land levelling. Other uses include greenhouse construction, solar plant establishment, vermicompost production, silkworm rearing, and beekeeping. This diverse range of applications marks the scheme’s potential to enhance agricultural productivity.

Implementation Framework

The Sahakar Kisan Kalyan Yojana facilitates loan access through cooperative banks. Farmers can obtain loans from primary cooperative land development banks and Central cooperative banks. The scheme encourages timely repayments, which is crucial for maintaining financial health within the cooperative sector.

Financial Provision

A budget of ₹39.75 crore has been allocated for the interest subsidy in the current financial year. This financial backing aims to ensure the scheme’s sustainability and effectiveness. The government anticipates that this funding will benefit the farming community.

Impact on Cooperative Banks

The scheme is expected to empower cooperative banks. With the introduction of the interest subvention, banks will have more capacity to disburse loans. This will enable them to reach a larger number of farmers. Increased loan disbursement can lead to improved agricultural practices and higher yields.

Recovery Initiatives

In conjunction with the interest subvention scheme, a one-time settlement scheme has been announced. This initiative targets loan defaulters who have struggled to repay their debts. It provides an opportunity for these individuals to settle their dues, thereby improving the overall financial health of cooperative banks.

Important Facts for Exams:
Sahakar Kisan Kalyan Yojana: This scheme facilitates loan access through cooperative banks. It aims to enhance farmers’ financial accessibility and promote timely repayments to maintain financial health.
Interest Subsidy: Farmers receive a 7% interest subsidy on agricultural loans. For non-agricultural loans the subsidy is 5%. This reduces the effective interest rates for timely repayments.

« Previous Post Next Post »