Interest Free Farm Loan Scheme

The Government of Jharkhand has initiated the Interest Free Farm Loan Scheme to contribute towards the welfare of farmers present in the State. Mr Raghubar Das, the Chief Minister of the State, announced the initiation of this Scheme in the inaugural ceremony of the Global Agriculture & Food Summit ’18.

Objectives of Interest Free Farm Loan Scheme

The primary objective behind the implementation of this Scheme is to assist farmers in the State financially and to ensure that there are flexible loans available at ease to satisfy their requirements.
The farmers from the State of Jharkhand will now be able to obtain a farm loan at 0% interest rate.
The Government will pay the interest for the loan acquired for a time period of one year after which the usual interest rate is applicable to the loans.
In addition to this, a 50% subsidy is also being provided to dairy farmers.

Scheme Name	Interest Free Farm Loan Scheme
Launched by	The Chief Minister of Jharkhand Mr Raghubar Das
Date of Implementation	29 -11-2018
Application Period Commences from	2019
Category of Scheme	State Government Scheme
Objective	To credit loan for farmers at zero interest rate for a span of one year.

Merits of Interest Free Farm Loan Scheme

The Scheme provides financial security for farmers by increasing their income steadily.
Fasal Bima, which promotes zero premium crop insurance, has been initiated in accordance with this Scheme.
As per this Scheme, the farmers are not required to pay any crop insurance from 2018.
The Scheme also insists uninterrupted power supply throughout the year to all the villages of the State.
Information regarding Crops, Weather, Schemes and Subsidies will be provided to the farmers via mobile application. In order to accomplish this, the Government decided to distribute 28 Lakhs of free mobile phones between 2019 - 2021.

Salient Features of Interest Free Farm Loan Scheme

The only condition laid under this Scheme is that the loan should be paid back within a year as the State Government will not bear the interest rate for more than a year.
The 50% subsidy is given to dairy farmers to encourage women self-help groups and in turn, nurtures individuals towards dairy farming.
The Chief Minister of the State also suggested that on paying equal attention to Cultivation, Cattle Rearing for Dairy and Solar Farming, the income of farmers may increase up to four times.
The Scheme also states that 100 farmers including 50 women will be sent on full expenses paid a trip to Israel and the Philippines in order to practice modern farming techniques.
The farmers who are eligible to apply for this Scheme may do so in any cooperative banks, public sector banks or regional rural banks from the year of 2019.

Eligibility Criterion to avail Interest Free Farm Loan Scheme

The applicant should possess an Aadhar Card.
The applicant should also have a PAN Card in order to track financial transactions.
A reliable address proof document should also be enclosed to cross-check the domicile of the applicant.
A copy of the papers stating ownership of the agricultural land on which the subsidy is being availed.

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Frequently Asked Questions

Common questions about Interest Free Farm Loan Scheme in Jharkhand for Farmers.

The Interest-free Farm Loan Scheme is an initiative by the Government of Jharkhand to provide financial assistance to farmers in the state. Under this scheme, farmers can obtain farm loans at 0% interest rate for a period of one year, with the government paying the interest during this time.

To be eligible for the Interest-free Farm Loan Scheme, an applicant must possess an Aadhaar Card, PAN Card, address proof document, and papers proving ownership of agricultural land on which the loan is being availed.

Farmers can apply for the Interest-free Farm Loan Scheme through cooperative banks, public sector banks, or regional rural banks in Jharkhand, starting from the year 2019.

The primary objective of the Interest-free Farm Loan Scheme is to assist farmers in Jharkhand financially and ensure that they have access to flexible loans at ease to satisfy their requirements.

One of the salient features of the Interest-free Farm Loan Scheme is that the loan must be paid back within a year, as the government will not bear the interest rate beyond that period. Additionally, a 50% subsidy is provided to dairy farmers to encourage women self-help groups and dairy farming.

Apart from the interest-free loan, the scheme also promotes zero premium crop insurance (Fasal Bima), ensures uninterrupted power supply to villages, and provides information to farmers via mobile applications. The government also plans to distribute 28 lakh free mobile phones to farmers between 2019 and 2021.

Yes, the scheme includes a provision to send 100 farmers, including 50 women, on fully paid trips to Israel and the Philippines to learn modern farming techniques.

The scheme suggests that by paying equal attention to cultivation, cattle rearing for dairy, and solar farming, the income of farmers can potentially increase up to four times.

The Interest-free Farm Loan Scheme was announced by the Chief Minister of Jharkhand, Mr. Raghubar Das, on November 29, 2018, during the inauguration of the Global Agriculture & Food Summit '18.

Yes, the Interest-free Farm Loan Scheme provides a 50% subsidy to dairy farmers to encourage women self-help groups and promote dairy farming in the state.