IndiaFilings » Learn » Business Registration » Interest-free Farm Loan Scheme

Interest-free Farm Loan Scheme

Interest-free Farm Loan Scheme

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.