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

Key Highlights:

• Loans are available for tractors and agricultural equipment.
• Interest subsidy up to 7% for timely repayment.
• Applicable for loans of five years or more.
• Covers farm storage, fencing, and land improvement.
• Applications through cooperative bank branches with land documents.

Big news for farmers! The government is offering loans with interest subsidies for agricultural equipment, including tractors. This initiative, part of the Interest Subsidy Scheme on Agricultural Loans 2024-25, aims to provide affordable loans to farmers.

The central government, along with state governments, is ensuring farmers can access loans at lower interest rates to boost agriculture-related activities. In Rajasthan, the state government has launched the Interest Subsidy Scheme on Long-Term Cooperative Agricultural Loans 2024-25. Farmers can now take loans for various purposes, such as buying tractors, constructing grain storage, and setting up poly houses, while also benefiting from interest subsidies.

Also Read: Farmers to Get 12% Interest on Delayed Crop Insurance Claims Under PM Fasal Bima Yojana

Who Can Benefit?

Farmers who repay their loan installments on time will be eligible for the interest subsidy. This scheme covers loans taken for five years or more from Central Cooperative Banks under long-term agricultural and non-agricultural loan schemes.

Eligible Loan Purposes

Loans under this scheme can be used for:

• Purchasing tractors and agricultural tools like threshers, combine harvesters, and power tillers.
• Constructing grain or onion storage facilities.
• Setting up poly houses, shade net houses, or fencing and boundary walls.
• Land improvement, land leveling, or well/tube well construction.
• Dairy farms and other agriculture-related activities.

Also Read: Farmers Can Now Get Loans on Crop Guarantee: A New Government Scheme

Interest Subsidy Details

Managing Director Bhanwar Surendra Singh of Ajmer Central Cooperative Bank shared the following subsidy rates:

1. For loans disbursed before 2024-25:
   • Farmers repaying their loans on time will receive a 5% interest subsidy.
2. For loans disbursed in 2024-25:
   • Farmers repaying their loans on time will receive a 7% interest subsidy.

For housing construction loans (non-agricultural purposes) distributed in 2024-25, farmers can avail of a 5% interest subsidy if they make timely payments.

Also Read: Top 10 Tractor Loan Providing Companies in India for Farmers in 2024

How Farmers Can Apply

Farmers interested in this scheme must submit an application along with land documents to their nearest cooperative bank branch.

How the Subsidy Works

Long-term agricultural loans from Central Cooperative Banks are offered at a 10% interest rate. With a 7% interest subsidy from the state government, farmers effectively pay just 3% interest. This is the first time Rajasthan farmers can access such a high subsidy on long-term agricultural loans.

Farmers who took loans earlier and are repaying on time will also receive the subsidy benefits announced in the 2024-25 budget.

This initiative is a major step towards supporting farmers by reducing their financial burden and encouraging timely loan repayments.

Also Read: Majhi Ladki Behan Yojana Update: Over 20 Lakh Women May Be Excluded, Here's Why

CMV360 Says

The Interest Subsidy Scheme 2024-25 is a significant step toward empowering farmers with affordable loans for agricultural and non-agricultural needs. By reducing financial burdens and encouraging timely repayments, the scheme promotes agricultural growth, modern farming practices, and rural development. Farmers should seize this opportunity to boost their farming efficiency and income. If you're a farmer, visit your local cooperative bank to explore this opportunity!