Long Term Agriculture Loan Scheme: Affordable Loans for Farmers


By Robin Kumar Attri

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Rajasthan government offers long-term loans at 5.05% interest for tractors and equipment, supporting farmers and small entrepreneurs.

Key Highlights

Farmers in India often need financial assistance for purchasing equipment and improving their agricultural activities. To support them, the central and state governments provide various loan schemes. While short-term loans like KCC (Kisan Credit Card) are available, they may not be sufficient for larger investments. Understanding this need, the Rajasthan government has launched the Long Term AgricultureLoan Scheme. Under this scheme, farmers can avail of loans for up to nine years from the Land Development Bank to buy tractors and other agricultural equipment.

Also Read: Rajasthan Farmers to Get Low-Interest Loans for Tractors and Agricultural Equipment

Loan Available for Various Agricultural Activities

Farmers can use this loan for multiple agricultural activities, including:

Loan Distribution Target of Rs 130 Crore

The Bhajanlal government in Rajasthan has set a target of Rs 130 crore for loan distribution. This scheme aims to support farmers and small entrepreneurs across all districts in the state. The loan will be provided through cooperative land development banks under an interest subsidy scheme, reducing financial burdens on farmers.

Loan at Low-Interest Rates

Farmers and small entrepreneurs can now avail themselves of long-term agricultural and non-agricultural loans at competitive interest rates:

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

Which Districts Will Benefit?

Loan distribution was previously affected due to the lack of NABARD refinance, but with recent funding and reduced interest rates from NCDC, the scheme is now active. 15 districts that were unable to disburse long-term loans for the last 5-6 years will now benefit from this initiative. These include:

Boost to Cooperative Credit System

This initiative will strengthen Rajasthan’s cooperative credit structure (SLDB/PLDBs), ensuring easy access to long-term credit for farmers. It will also drive economic growth in both agricultural and non-agricultural sectors, helping farmers improve their businesses and become financially strong.

New Loan Option for Farmers with Existing Loans

Under this scheme, farmers can repay their old loans and apply for new ones. The registrar of the cooperative society has urged farmers to clear outstanding loans, making their land mortgage-free. The Rajasthan government has allocated Rs 400 crore in its budget for a 5% interest subsidy to support this loan scheme.

This new loan scheme is a big opportunity for farmers and small entrepreneurs to expand their businesses, adopt modern farming techniques, and improve their financial stability.

Also Read: PM Kisan Samman Nidhi 19th Installment Released: Rs 2,000 Credited to 9.8 Crore Farmers

CMV360 Says

The Long Term Agriculture Loan Scheme is a significant initiative that provides farmers with affordable financial support. With low-interest rates and extended repayment periods, this scheme will help farmers modernize their practices, increase productivity, and strengthen the agricultural sector. It is a crucial step towards economic empowerment and sustainable rural development.