To strengthen the economic condition of farmers, both the central and state governments are working together at the grassroots level. In this effort, there is also a focus on alleviating the burden of heavy debts on farmers. The Rajasthan government has taken a significant step by introducing a scheme for a 5% interest subsidy for farmers taking long-term agricultural loans. In addition, farmers who repay their loans on time will be able to access loans at a 5% interest rate. This interest rate is the lowest available, compared to the rates offered by any commercial bank. With the implementation of this scheme, farmers who repay their loans on time are benefiting from this subsidy.
What is the Interest Subsidy Scheme? Under this scheme, the government provides loans to farmers for both short-term and long-term agricultural purposes. While many farmers repay their loans on time, some are unable to do so for various reasons. To encourage farmers to repay loans on time, the Rajasthan government has initiated the Interest Subsidy Scheme. Under this scheme, farmers receive a 5% subsidy on the interest they pay on long-term loans taken. This announcement was made in the 2023-24 budget by the state government.
Benefits of the Scheme: Farmers taking long-term loans usually have to pay an interest rate of 10%. However, under the Interest Subsidy Scheme, farmers who repay their loans on time only need to pay a 5% interest rate. This includes loans for activities such as drip irrigation, pump sets, borewells, deepening of wells, electricity connections, canal construction, and pond construction, among others. The scheme also covers loans for the purchase of farming equipment such as tractors, threshers, and combine harvesters. Furthermore, the scheme extends to long-term loans taken for various agricultural activities, including dairy farming, land improvement, land leveling, purchase of agricultural land, construction of grain/onion storage facilities, greenhouses, solar plants for agricultural purposes, bundling of agricultural land for fencing or boundary wall, livestock farming (sheep/goat/pig/poultry), horticulture, and camel/bullock cart purchase.
In addition to these benefits, farmers who take loans for housing construction on their farms in the financial year 2023-24 will also receive an annual 5% interest subsidy.
How to Apply: To avail the benefits of the scheme, farmers can apply both online and offline. For offline applications, farmers need to visit the Cooperative Development Bank in Rajasthan to apply for the loan. Here, all documents will be verified, and after that, the loan will be sanctioned. On the other hand, for online applications, you should visit the official website of the scheme. You will find the loan application form there, which you need to fill out and submit.
For scheme applications, you will need documents like your Aadhar card, residential proof, passport-sized photo, bank account details, land-related documents, and identity proof.
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