Government to Provide Loans and Interest Subsidy for Tractors and Farm Equipment: How Farmers Can Benefit

Key Highlights

• 7% interest subsidy on new agricultural loans for timely repayment
• 5% subsidy on existing loans with timely payments
• Non-agricultural loans also eligible for subsidy
• Covers purchases like tractors, machinery, wells, and farm housing
• Farmers can contact cooperative banks or agriculture offices for details

Farmers often need money for various purposes, especially for farming activities. To address the challenges farmers face with high-interest loans from moneylenders, the state government has introduced a special loan and interest subsidy scheme for agricultural and non-agricultural purposes.

Under the Interest Subsidy Scheme on Long-Term Cooperative Agricultural and Non-Agricultural Loans, 2024-25, the government offers farmers a 7% interest subsidy on long-term loans for agricultural equipment, tractors, and other essential items.

Also Read: Domestic Tractor Sales Rise in October 2024: 1,44,675 Units Sold with 22.37% Growth

7% Interest Subsidy for Agricultural Loans

The Cooperation Minister Gautam Dak announced that farmers who take loans through the Primary Cooperative Land Development Bank and Central Cooperative Banks can benefit from this scheme if they repay on time. Under the Sahakar Kisan Kalyan Yojana, farmers taking loans this year will get a 7% interest subsidy, lowering the effective interest rate to just 4%.

The government has allocated Rs 39.75 crore for this scheme. This is a significant step to help farmers reduce interest payments and access affordable credit for farming and non-farming needs.

5% Interest Subsidy for Existing Loans

Farmers who have already taken loans and are making timely payments will receive a 5% interest subsidy on those loans. This subsidy was increased by 2% in the recent budget for 2024-25 to support farmers further.

Non-Agricultural Loans Now Eligible for Subsidy

For the first time, farmers taking non-agricultural loans can also benefit from this subsidy. Those who repay these loans on time will receive a 5% interest subsidy, reducing their interest rate to 3.5% for non-agricultural activities.

Also Read: Get Up to 80% Subsidy for Installing Tube Wells in Bihar: How to Apply

Loan Purposes Covered Under the Scheme

Farmers can use this loan for various agricultural needs, such as:

• Tractors, agricultural machinery, threshers, and power tillers
• Wells, tube wells, and irrigation systems
• Grain warehouses, fencing, and land improvements
• Animal husbandry, horticulture, and fish farming

The scheme also covers non-agricultural purposes like:

• Micro and small industries, transport services, and self-employment
• Education loans, healthcare, tourism, and farm housing

Benefits Calculation Example

For example, if a farmer takes a loan of Rs 10 lakh this year and repays on time, they will save Rs 68,231 in interest through the 7% subsidy. For non-agricultural loans, a farmer taking Rs 50 lakh for farm housing could save Rs 2,46,108 on interest with a 5% subsidy.

Where to Get More Information

Farmers who are interested in this scheme can contact their nearest cooperative bank or agriculture department officials for further details. This initiative aims to support farmers financially and promote timely loan repayments across the state.

Also Read: Now Robots Will Help Farmers: Boosting Production and Profits

CMV360 Says

This new loan and interest subsidy scheme is a valuable support for farmers, helping them afford essential agricultural and non-agricultural resources. With lower interest rates and various eligible purposes, the initiative encourages timely repayments, reduces financial stress, and empowers farmers to enhance productivity and secure their livelihoods.