Krishak Sahakari Rin Mitra Yojana

The State Government of Madhya Pradesh has launched Krishak Sahakari Rin Mitra Yojana for the welfare of the farmers in the state. As stated by the Chief Minister of Madhya Pradesh, Shivraj Singh Chauhan, the primary objective behind the implementation of this scheme is to encourage farmers to repay the agricultural or crop loans acquired by them, within the stipulated time given by the banks. It is also decided that under this scheme, the farmers who pay back the loan on time will get rewarded.

Krishak Sahakari Rin Mitra Yojana

During the occasion of 64th All India Cooperative Week, the cooperative department of Madhya Pradesh announced two new schemes which are inclusive of ‘Farmer Cooperative Loan Friends Scheme’ or ‘Krishak Sahakari Rin Mitra Yojana’ on November 2017. The names and relevant details of these farmers are registered on the Board of Cooperative Society. The State Government is also planning to form a federation to maintain these records at the state level. This may result in generating new employment opportunities for the youth of both village and district levels.

Salient Features of this Scheme

The implementation of this scheme is accomplished from district to state level, and hence, the execution of it is made much simpler.
Under Krishak Sahakari Rin Mitra Yojana, the farmers who repay their loans consecutively for three or five years will be rewarded on a district level or state level respectively.
The core purpose of this scheme is to maintain a stable balance between the repayment of loans acquired and further sanctioning of loans.
Farmers who benefited from the Krishak Sahakari Rin Mitra Yojana can repay the loan obtained within a span of five years. And this can also increase the probability of receiving further loans in future.
Cooperative Societies have been exposed to various new areas such as transportation, medicine and tourism.
Apart from the above merits, some
workshops are also organised at the Primary Cooperative Societies level in the upcoming months to promote Government Schemes.
On account of Krishak Sahakari Rin Mitra Yojana, the government has initiated the process of arranging employment and enterprise opportunities for the young graduates based on their qualifications and the local needs.

Major Details of Krishak Sahakari Rin Mitra Yojana

Under Krishak Sahakari Rin Mitra Yojana, the government will provide relaxation of INR 10,000 on a loan amount of INR 1 Lakh. (The farmers are expected to pay only INR 90,000)
Farmers usually take agricultural or crop loans at specified intervals. And despite the delay due to the price drop, drought and other reasons many of the loan payers choose to repay the loans within the stipulated time.
The Chief Minister of Madhya Pradesh stated that such farmers who are credible to the Government and repay their loans on time despite encountering with many difficulties should be honoured.
And hence, it is decided by the State Government that, as an act of appreciation, the names of these farmers who paid back the loans within 3 or 5 years will be displayed on the noticed boards of the Cooperative Societies.
It is evident from the surveys that even on providing loans with absolutely zero interest rates, the farmers are not repaying the loan amount, many districts face exceedingly low loan recovery percentage which accounts to lesser than 15 per cent.
Due to this, the financial revenue generated by the banks is also significantly affected. Thus, in order to rectify all these issues, the Government initiated the Krishak Sahakari Rin Mitra Yojana.

Eligibility Criterion

In order to avail Krishak Sahakari Rin Mitra Yojana, the applicant should satisfy the following conditions,

The Krishak Sahakari Rin Mitra Yojana is applicable only for native farmers.
Only the farmers who repay the loan amount within the stipulated time will be awarded.

To know more about similar schemes visit,

Krishi Rin Samadhan Yojana

Back to Learn

Frequently Asked Questions

Common questions about Krishak Sahakari Rin Mitra Yojana for Farmers in Madhya Pradesh.

The Krishak Sahakari Rin Mitra Yojana is a scheme launched by the State Government of Madhya Pradesh to encourage farmers to repay their agricultural or crop loans on time. It aims to maintain a balance between loan repayment and sanctioning of new loans.

The Krishak Sahakari Rin Mitra Yojana is applicable only for native farmers of Madhya Pradesh who repay their loans within the stipulated time given by the banks.

Under this scheme, farmers who repay their loans consecutively for three or five years will be rewarded on a district or state level, respectively. Additionally, they may get relaxation of INR 10,000 on a loan amount of INR 1 Lakh.

The scheme aims to appreciate and honor farmers who repay their loans on time despite difficulties by displaying their names on the notice boards of Cooperative Societies.

The scheme addresses the issue of low loan recovery rates in many districts, which affects the financial revenue generated by banks. It aims to improve loan repayment and enable banks to sanction more loans.

The implementation of the scheme is accomplished from the district to the state level, with the execution made simpler at various levels. The government also plans to form a federation to maintain records at the state level.

The scheme may generate new employment opportunities for the youth at village and district levels. Additionally, workshops are being organized at the Primary Cooperative Societies level to promote government schemes.

The scheme exposes Cooperative Societies to new areas such as transportation, medicine, and tourism. It also aims to arrange employment and enterprise opportunities for young graduates based on their qualifications and local needs.

Displaying the names of farmers who repay their loans within 3 or 5 years on the notice boards of Cooperative Societies is an act of appreciation and honor by the State Government.

The scheme was initiated to address the issue of low loan recovery rates in many districts, which affected the financial revenue of banks. It aims to encourage timely loan repayment and enable banks to sanction more loans for farmers.