Interest Subvention Scheme Boosts Agriculture

Interest Subvention Scheme

The Rajasthan government has introduced a transformative interest subvention scheme aimed at bolstering farmers’ financial stability and improving agricultural productivity. This initiative offers significant interest subsidies on agricultural and non-agricultural loans, paving the way for increased income and sustainable farming practices.

Interest Subsidy Highlights

• Agricultural Loans: Farmers can avail of a 7% interest subsidy, reducing the effective interest rate to 4% for timely repayments.
• Non-Agricultural Loans: A 5% subsidy is available, lowering the interest rate to 3.5% for eligible borrowers.

Loan Utilization Scope

The scheme supports diverse agricultural activities, including:

• Deepening tube wells and installing drip irrigation systems.
• Land levelling and greenhouse construction.
• Establishing solar plants, vermicompost units, silkworm rearing, and beekeeping.

This broad application underscores the initiative’s potential to modernize farming techniques and enhance productivity.

Implementation Framework

The scheme operates under the Sahakar Kisan Kalyan Yojana, ensuring easy access to loans through cooperative banks. Farmers can secure loans from primary cooperative land development banks and Central cooperative banks. Timely repayment is emphasized to maintain the financial health of the cooperative sector.

Budgetary Allocation

The government has allocated ₹39.75 crore for the scheme in the current fiscal year, ensuring its sustainability and reach. This financial provision aims to directly benefit the farming community and support the scheme’s long-term success.

Impact on Cooperative Banks

By empowering cooperative banks, the scheme enhances their ability to disburse loans to a larger number of farmers. This increased lending capacity is expected to drive better agricultural practices, resulting in higher yields and improved livelihoods.

One-Time Settlement for Loan Defaulters

To complement the interest subvention scheme, a one-time settlement initiative has been introduced. This measure provides relief to loan defaulters, enabling them to settle their debts and improving the financial stability of cooperative banks.

With its comprehensive approach, the Rajasthan government’s interest subvention scheme promises to revolutionize the agricultural landscape, fostering growth and resilience among the state’s farmers.