Himachal Pradesh government has launched Agriculture Loan Interest Subvention Scheme for farmers whose land is at risk of auction due to overdue farm loans. Under this scheme, the state government will pay 50% of the outstanding interest on agricultural loans of up to ₹3 lakh per farmer, helping them settle their dues and save their land.
Around 6,356 farmers across the state are likely to get benefit from this scheme, and the government has set aside ₹50 crore for it. This is a one-time settlement support, made for farmers who are stuck with old loans and growing interest.
Agriculture Loan Interest Subvention Scheme Himachal Pradesh
This scheme was announced in the state Budget and has now been rolled out by Chief Minister Sukhvinder Singh Sukhu. Many farmers in Himachal have been facing money problems because of bad weather and poor returns from farming. Their loans turned overdue, and the interest kept piling up. Some even reached a point where banks were ready to auction their land.
To stop this, the government decided to share half of the pending interest. So if a farmer has to pay interest on a farm loan within the ₹3 lakh limit, the government picks up 50% of that interest. The farmer pays the rest and clears the loan under a one-time settlement.
Who Can Get Benefit Under This Scheme
This scheme is only for farmers of Himachal Pradesh who have taken farm loans through the cooperative banks and have fallen behind on payments. Before applying, it is good to check who exactly can get this support.
- Farmers of Himachal Pradesh whose agricultural loan has become overdue and is still pending with the bank.
- Farmers whose outstanding farm loan amount is up to ₹3 lakh, the interest subsidy applies within this limit only.
- Farmers whose land is under threat of auction by the bank because of loan default.
- Borrowers identified and listed by the concerned cooperative bank branch.
The interest subsidy is given on the pending interest part, not on the full loan. The farmer still has to pay the principal and the remaining half of the interest to close the loan account.
| Detail | Information |
|---|---|
| Scheme Name | Agriculture Loan Interest Subvention Scheme |
| State | Himachal Pradesh |
| Launched By | CM Sukhvinder Singh Sukhu |
| Beneficiaries | Around 6,356 farmers |
| Benefit | 50% of pending interest on loans up to ₹3 lakh |
| Total Budget | ₹50 crore |
| Type | One-time settlement support |
| Implementing Banks | HP State Cooperative Agriculture and Rural Development Bank, Kangra Cooperative Agriculture and Rural Development Bank |
How the Benefit Will Reach Farmers
Farmers do not have to run around or fill long forms for this. The work of finding eligible farmers is being done by the banks themselves. Here is how the process works.
STEP 1 - The bank branches of the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank will check their records and find farmers whose loans are overdue and within the ₹3 lakh limit.
STEP 2 - Each branch will prepare a list of eligible borrowers who qualify for the interest subsidy and forward it for approval.
STEP 3 - Once a farmer is on the list, the government share of 50% interest is adjusted, and the farmer pays the balance to settle the loan in one go.
If you have a pending farm loan with either of these cooperative banks, it is best to visit your loan branch and ask whether your name is in the eligible list. The CM has told the banks and departments to finish this work fast so that farmers get the support on time.
Why This Scheme Matters for Himachal Farmers
Farming in the hills is not easy. Erratic rain, crop damage and low prices often leave farmers short of money. When a loan turns overdue, the interest alone can become a heavy burden, sometimes bigger than the farmer can ever repay. Losing land to a bank auction is the worst fear for any farming family.
By paying half the pending interest, the government is trying to bring such loans back on track. It gives farmers a real chance to clear their dues, keep their land, and continue farming without that constant worry. This support sits alongside other steps the state has taken for farmers, like higher prices for naturally grown maize and wheat and a small freight subsidy for moving produce to collection centers.
Farmers who want similar central support for farm credit can also look at the Agriculture Infrastructure Fund Scheme and the Pradhan Mantri Krishi Sinchai Yojana for irrigation support.