Krishi Rin Samadhan Yojana

Krishi Rin Samadhan Yojana

Krishi Rin Samadhan Yojana

Krishi Rin Samadhan Yojana has been launched by the Government of Madhya Pradesh to help the farmers financially by providing subsidised agricultural loans. Under this scheme, the government provides loans to farmers at the lower interest rate to help them with funding. This scheme is also known as Madhya Pradesh Loan Waiver Scheme as it will work as a loan waiver and ease the burden of the MP farmers. In this article, we look at the Krishi Rin Samadhan Yojana in detail.

To know about Agriclinic and Agribusiness Centers Scheme

Objective of the Scheme

This scheme aims at the development of the agricultural activities in the state and also helps the farmers with debt relief. The farmers will be able to pay their debts to their respective banks in equal instalments under the scheme.

Benefits of the Scheme

The below following are some of the main features and benefits of applying for a Krishi Rin Samadhan Scheme.

  • Under this scheme, the interest of farmers on the agricultural loan will be waived by the government of Madhya Pradesh. About 17 lakh 78 thousand farmers will be able to take advantage of this scheme.
  • The farmers will have to pay their loan amount in 2 equal instalments, in which has been made compulsory to pay the 1st instalment on the specified date.
  • After filling up 50% of its loan amount, the farmer will get relief in interest on his loan and the farmer will also be given a new credit limit for the agricultural loans.
  • After paying the 1st instalment of the loan to the farmer, the interest on his second instalment will be waived. And the remaining amount will be converted to a cash loan which will be 0% interest.
  • The Government of Madhya Pradesh has allocated an amount of 2600 crores for this scheme.
  • This loan apology will be offered in the ratio of 80:20 between the government and the bank. The new credit limit will be provided to these farmers to take loans again from the government. Under this scheme, 80% of the loan waiver will be provided by the government and 20% of this will be given by the
  • This loan forgiveness scheme will provide relief to the farmers of Madhya Pradesh in their debt.

Applicability of the Scheme

The MP government provides Rs. 1 Crore to the family of a deceased farmer and also Rs. 5 lakhs will be given to the farmers those who are being injured critically.

Department

The government has allocated a new department to supervise and monitor this scheme. The assigned department will calculate the total production of the cost of the state and the profit of each farmer. Thus the department will help the farmer to earn more subsidy and also ensures that no farmers are deprived.

Limit of Coverage

At the option of insured farmers, the sum insurance may extend to the value of the threshold yield of the insured crop. Further, a farmer may also ensure his crop beyond the threshold yield value level upto 150% of average yield value of notified area on premium payment at commercial rates.

Procedure for Claims

The procedure of assessment and settlement of claims are automated processes, and the claim amount is credited to the insured farmers’ bank account. No paperwork is required to be done by insured farmers or intermediaries.

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