State government is planning to introduce a new scheme named as “Mukhya Mantri Krishi Rinn Yojana” or “Chief Minister Krishi Rinn Yojana” under which it will provide crop loans at zero interest rates to farmers in the state. The government has decided to launch the zero interest crop loan scheme in order to provide farmers easy access to formal credit through banking channels.
The state government, under the “Chief Minister Krishi Rinn Yojana” would provide interest subvention of 4 percent on crop loans and kisan credit cards with a limit of up to 3 Lakh. The interest subventions would be applicable loans sanctioned by all banks to all farmers of the state in the current financial year. This subvention given by state govt. would be over and above of the interest subvention given by the central govt. as per policy issued by RBI/NABARD.
Zero interest crop loan facility would be provided to the farmers who make the timely payment of loans taken up to Rs 3 lakhs. The farmers who repay their short term crop loan within one year of disbursement will get 3% interest subvention under the scheme.
The reimbursement of the subvention amount of crop loans to the banks would be done by NABARD which will act as channel partner under the scheme.
Chief Minister Krishi Rinn Yojana would benefit all the farmers availing Kisan Credit Card or crop production loan from Arunachal Pradesh Rural Bank, all commercial banks, Arunachal Pradesh State Cooperative Apex bank (APSCAB).
The application forms for the Kisan Credit Cards and crop loans would be made available by the banks itself. The format would be the same as being already used to avail KCC and short term crop loans. Arunachal Pradesh state government has set a target to provide scheme benefits to at least 7500 farmers within the current financial year.