AI SummaryInterest Subsidy on Loans for Agriculture and Allied Activities is a Goa government scheme that helps farmers get concessional loans from banks by paying interest subsidy on agriculture and allied activity loans. Government of Goa has notified the revised scheme for three years from 1 April 2025 to 31 March 2028 through an official gazette notification published on 13 November 2025.
The scheme operates across every taluka of Goa and covers loans sanctioned during the scheme period by scheduled commercial banks, small finance banks, Goa State Co-operative Bank and primary agricultural cooperative societies. Short-term crop loans up to ₹3 lakh and agricultural term loans up to ₹5,00,000 are eligible for the interest subsidy, and the maximum loan tenure is five years.
Interest Subsidy on Loans for Agriculture and Allied Activities - Introduction
The revised scheme is notified by Directorate of Agriculture, Government of Goa. It eases the burden of interest after a farmer takes a loan, attracts more people toward farming by giving easy loans, and makes finance available quickly for agricultural work. It replaces the older version notified on 8 February 2021 and will be reviewed for continuation after the three year period ends.
Eligible farmers include those engaged in agriculture, animal husbandry and fisheries. Krishi Card is mandatory for agriculture and animal husbandry farmers, and Kisan Credit Card holders are also covered. Loans for fisheries and animal husbandry follow separate guidelines issued by the concerned departments.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Interest Subsidy on Loans for Agriculture and Allied Activities |
| Level | State |
| State | Goa |
| Category | Agriculture, Rural and Environment |
| Benefit Type | Cash (interest subsidy on loans) |
| Loan Limit | Up to ₹5,00,000 |
| Interest Subsidy | 4% on prompt repayment |
| Scheme Period | 1 April 2025 to 31 March 2028 |
| Main Department | Directorate of Agriculture, Government of Goa |
| Application Mode | Through banks, no direct application |
Benefits
The main benefit is a lower cost of credit for farmers. Government of Goa gives an interest subsidy of 4% on short-term and long-term loans to farmers who repay their loans promptly. Farmers already covered under the Government of India interest subvention scheme remain eligible for this state subsidy as well.
| Loan Type | Subsidy Benefit |
|---|---|
| Short-Term Loans | 4% interest subsidy for farmers who repay on time |
| Long-Term Loans | 4% interest subsidy for farmers who repay on time, subject to scheme rules |
Banks will not process subsidy claims of farmers who default on repayment. The subsidy is paid for the full tenure of the loan as per the normal repayment schedule, up to a maximum repayment period of five years.
Eligibility
To get the interest subsidy, the farmer must take an eligible agriculture or allied activity loan from a bank listed under the scheme and repay it on time. Krishi Card is mandatory for agriculture and animal husbandry farmers, and Kisan Credit Card holders can also get the benefit.
Loans for fisheries activities do not need a Krishi Card and follow the guidelines of the Department of Fisheries. The loan eligibility is based on the scale of finance approved for each activity.
Loans Covered
Short-term and long-term loans up to ₹5,00,000 are covered. Bank loans are sanctioned as per the guidelines of Reserve Bank of India and the lending rules of each financial institution. Fishery loans cover the purchase of canoes, outboard motors, fishing nets, fish finders and GPS units, along with aquaculture and mariculture work.
- Short-term agriculture loans cover seeds, organic and inorganic fertilizers, irrigation, weed and pest control, labour, harvesting and marketing costs.
- Short-term animal husbandry loans cover cattle feed, recurring feeding costs, veterinary aid, labour, water and electricity supply.
- Short-term fishery loans cover fuel, ice, labour charges and loading or landing charges, while long-term loans take care of land development, fencing and capital improvements.
Application Process
A farmer does not apply to the department directly for this subsidy. The interest subsidy is linked to a bank loan, and the bank handles the claim on behalf of the borrower. The steps are given below.
STEP 1 - Visit the branch of an eligible lender such as a scheduled commercial bank, small finance bank, Goa State Co-operative Bank or a primary agricultural cooperative society.
STEP 2 - Apply for a short-term crop loan or a long-term agriculture term loan along with the required documents, and share Krishi Card or Kisan Credit Card details where applicable.
STEP 3 - The bank checks the proposal as per its lending rules and RBI guidelines, sanctions the loan and disburses the amount.
STEP 4 - Repay the loan on time. The bank compiles half-yearly subsidy claims (April to September in October, October to March in April) and sends them to Directorate of Agriculture with a forwarding letter, excel statement and GAR-32.
STEP 5 - District Agriculture Officer verifies the claims and sanctions the subsidy, and the bank credits the subsidy amount to the borrower's account.
Documents
Keep the following documents ready while taking the loan so that the bank and the department can process the subsidy claim without delay.
- Aadhaar card of the applicant and bank account details.
- Krishi Card or Kisan Credit Card details for agriculture and animal husbandry farmers.
- Quotation bill and project proposal for long-term or term loans.
- Vessel registration certificate, fishing and net license receipts for marine fisheries.
- Permission letter from Directorate of Fisheries for canoe or trawler construction or net purchase.
- Certificate from Coastal Aquaculture Authority for prawn farming work where required.
References
Use these official sources to check the scheme rules, notification and latest updates.
- Official Gazette Notification PDF for Interest Subsidy on Loans for Agriculture and Allied Activities
- Directorate of Agriculture Notifications and Circulars
- Times of India update on the revised interest subsidy scheme
FAQ's
What is the official website for this scheme?
The revised scheme is notified by Directorate of Agriculture, Government of Goa. Scheme rules and notifications are available at Directorate of Agriculture notifications page and the official gazette PDF issued on 13 November 2025.
How can a farmer apply?
A farmer does not send an application to the department. The farmer takes a short-term or long-term loan from an eligible bank, repays it on time, and the bank forwards the half-yearly subsidy claim to Directorate of Agriculture. The subsidy is then credited to the borrower's account.
What is the maximum loan amount?
Short-term crop loans up to ₹3 lakh and agricultural term loans up to ₹5,00,000 are eligible for the subsidy. The maximum loan tenure is five years.
What interest subsidy does the government give?
Government of Goa gives a 4% interest subsidy on short-term and long-term loans to farmers who repay their loans promptly.
Is Krishi Card mandatory?
Yes, Krishi Card is mandatory for agriculture and animal husbandry farmers. Kisan Credit Card holders are also eligible for the subsidy.
Which banks are covered?
Scheduled commercial banks, small finance banks, Goa State Co-operative Bank and primary agricultural cooperative societies can extend these loans.
Are defaulters eligible?
No. Banks will not process the interest subsidy claims of farmers who default on their loan repayment.
Are fisheries and animal husbandry workers eligible?
Yes. Loans for fisheries and animal husbandry activities are covered, and the guidelines for these loans are issued by the concerned departments.
Is there an application fee?
No. There is no separate fee for the interest subsidy. The farmer only pays the normal charges of the bank loan process.
What is the scheme period?
The revised scheme runs from 1 April 2025 to 31 March 2028. Loans sanctioned during this period are eligible, and the scheme will be reviewed for continuation after three years.