AI SummaryMadhya Pradesh government has approved new terms for short term crop loans at 0 percent interest for 2026-27, and the biggest change is the repayment date. Separate due dates for Kharif and Rabi are now scrapped. Farmers now get one annual credit limit and a single repayment date within 12 months from the day the loan was disbursed.
MP Cabinet cleared this in June 2026 under Chief Minister Dr. Mohan Yadav. Along with it, over ₹5,600 crore was approved for farmer support. Loans up to ₹3 lakh through Primary Agriculture Cooperative Societies of district cooperative banks stay at zero interest as long as repayment is on time.
What Changed in the MP Crop Loan Rules
Under the old system, a farmer had to pay the loans at two separate deadlines, Kharif loan had one due date, rabi loan had another, and missing any of the due date resulted in no zero interest benefit.
Now there is one annual credit limit with two sub limits inside it. One sub limit is for cash withdrawal, the other is for buying inputs such as seed, fertilizer and pesticide. When farmers withdraw from the same limit through the year, the clock starts on the first withdrawal, not on a fixed calendar date.
Interest works through two subsidies. Farmers taking short term crop loans get a 1.25 percent interest subsidy. Farmers who repay by the due date get another 4 percent as an incentive subsidy from the state, which is what brings the effective rate down to zero.
Loan Details for 2026-27
| Detail | Information |
|---|---|
| Scheme | Short term crop loan at 0 percent interest |
| State | Madhya Pradesh |
| Approved On | June 2026, by the state Cabinet |
| Loan Limit | Up to ₹3 lakh on timely repayment |
| Interest Rate | 0 percent if repaid by the due date |
| Repayment Period | 12 months from the date of first withdrawal |
| Interest Subsidy | 1.25 percent, plus 4 percent incentive on timely repayment |
| Where To Apply | Primary Agriculture Cooperative Societies of district cooperative banks |
| Running Since | 2012-13 |
How to Get a Zero Interest Crop Loan in MP
The loan is provided through the cooperative society in your area, not through a commercial bank branch.
STEP 1 - Go to the Primary Agriculture Cooperative Society covering your village and ask for the crop loan application. Carry your land record papers, Aadhaar, bank passbook and Samagra ID.
STEP 2 - Give your Farmer ID number if you have one. From 2026, the Farmer ID from mpfr.agristack.gov.in is a mandatory requirement for this scheme and others like Kisan Credit Card and farm scheme.
STEP 3 - The society decided your annual credit limit based on your land holding and the crops you grow. The limit further divided for cash and for buying inputs, because these are separate sub limits now.
STEP 4 - Note the date of your first withdrawal and the 12 months from that day is your due date which decides whether you keep the zero interest benefit or not.
STEP 5 - Repay full loan on or before the due date to avail 0% interest benefit. If you miss the due date, you will be charged some interest on the loan amount.
FAQ's
What happens if I miss the repayment date?
You lose the 4 percent incentive subsidy, which is what makes the loan zero interest. Interest is then charged at the normal rate, so the cost of being a few days late is real.
Can I take this loan from any bank?
The zero interest scheme runs through Primary Agriculture Cooperative Societies of district cooperative banks. Loans from other banks follow the central Kisan Credit Card interest rules instead.