Government makes easier for Farmers to get loan and pay with low interest
New Delhi: Farmers will be getting a short-term crop loan at a cheaper rate of 7 percent. The farmers who pay their loan at regular time, who pay their debt at the right time, will get a loan at a reduced rate of 4 percent. The government has approved the fund of Rs 20,339 crore, for the farmers to get cheap loans for the crop.
1) After harvesting the crops, the loan will also be available at a cheaper rate of 7 percent for the storage of its produce. This arrangement will be for six months. Agriculture loan is available at nine percent rate. Under the Government's plan, two per cent interest subsidy will be provided on crop loan of farmers and this assistance will be available on crop loan up to Rs. 3 lakhs.
2) not only this farmers who pay their loan of above Rupee three lakh in time will get a additional help of 3 percent, after which the crop loan is available at the rate of only 5 percent.
3) In order to provide relief to the farmers affected by natural calamity, the government has decided to provide two percent interest subsidy on their reorganized loan amount on the first year interest.
4) This interest subsidy will be given to public sector banks, private sector banks, cooperative banks and regional rural banks in the event that they will provide interest assistance while using their money. NABARD will provide the amount as a recurring facility to provide affordable amount to regional rural banks and cooperative banks.
5) The government has said that short-term crop loan of cheap debt will be linked to the base from current financial year. During the year 2017-18, the Government has set a target of Rs. 10 lakh for agricultural loan. Last year, the target was nine lakh crores.
All these decisions were taken in the cabinet meeting held in New Delhi on Wednesday in the chairmanship of Prime Minister Narendra Modi. It has been stated in the official press note issued after the meeting, that the Cabinet has approved the interest subsidy scheme for 2017-18.