The state government of Rajasthan is providing interest free farm loans to the farmers of the state for last few years. Under the scheme, the state government is aimed at providing financial support of up to Rs. 75,000 crore to farmers within next 1.5 years. However, the government has already disbursed Rs. 55,000 crores worth of interest free loans to farmers in the last three and a half years.
This announcement was made by the CM of Rajasthan at the inaugural session of Global Rajasthan Agritech Meet (GRAM) in Udaipur. The Global Rajasthan Agritech Meet (GRAM) in Udaipur was organized by the Government of Rajasthan with the cooperation of Federation of Indian Chambers of Commerce and Industries (FICC) from 7th to 9th November.
On this occasion, government has informed that the Land Development Banks and Co-operative Banks are constantly reducing the interest rates on farm loans. The interest rate on loans will soon be further reduced to as low as 5.5 percent.
Rajasthan Interest Free Farm Loan Scheme
According to the release notification, the farmer will also get an insurance cover of Rs. 6 lakh under the cooperative sector Bima Yojana instead of Rs. 50 thousand as was provided earlier. This amount will soon be increased to Rs. 10 lakh. This insurance coverage will be provided to all those farmers who are the beneficiaries of this interest-free loan scheme.
Under the cooperative sector Bima Yojana, the premium amount of insurance cover is only Rs. 55 annually. The farmer has to pay only Rs. 27.50 per year. The remaining amount will be given by the district co-operative banks to the insurance company.
Moreover, Rajasthan Agriculture Marketing Board is also preparing a scheme for farmers who want to become entrepreneurs. The farmers will get an incentive for the construction of processing units on their agricultural land. In addition, the farmer who wants to the entrepreneur will be eligible for 50 percent subsidy of the capital cost of up to Rs. 20 lakh.