Prosperous Farmers Prosperous Nation
Farmers will be getting a short-term crop loan at a cheaper rate of 7%, which farmers who regularly pay their debt at the right time, will get this loan at a reduced rate of 4%. For the farmers getting cheap loans for the crop, the government has approved the fund of Rs 20,339 crore.
1) After harvesting the crops, loans will be made available at the cheaper rate of 7% for the storage of their products also. This arrangement will be for six months. Agricultural lien meets 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 that, an additional assistance of three percent is also given to the farmers who pay the loan at the time of loan above three lakh rupees, after which crop loan is available at the rate of only 4 percent.
3) In order to provide relief to the farmers affected by natural calamity, the government has decided to provide interest subsidy of two percent in the interest of the first year on their reorganized loan amount.
4) This interest subsidy will be given to public sector banks, private sector banks, co-operative 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 for providing an affordable amount to regional rural banks and cooperative banks.
5) The government has said short-term crop loan of cheap loans 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 loans. Last year, the target was nine lakh crores.
All these decisions were taken in the Cabinet meeting held in New Delhi on Wednesday under 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.