Assam Zero Interest Crop Loan Scheme 2026 - 100% Interest Subsidy on Agricultural Loans for Farmers

Assam government's Zero Interest Crop Loan Scheme 2026 offers 100% interest subsidy on short term agricultural loans for farmers. Under this scheme, farmers can get a crop loan of up to Rs 2 lakh at 0% interest rate. The state government launched this scheme in the budget to encourage farmers to take loans at a time when credit flow in the state was low.

Assam government has followed a multi-pronged approach for the growth of formal agrarian credit. One main scheme in this direction has been the introduction of 100% interest subvention on agricultural loans for select short term crops up to a maximum of Rs 2 lakh. As per the latest data, 10,06,305 farmers with a total loan value of Rs 5,978.73 crore have got benefit from this scheme. (Data is as on 12 February 2021).

Assam Zero Interest Crop Loan Scheme Update

Assam government continues to support farmers through this scheme. The Assam Budget 2026-27, presented on 10 July 2026 by Finance Minister Jayanta Malla Baruah, keeps farm credit and farmer income support among the top priorities. The budget focuses on improving access to farm credit through the Kisan Credit Card (KCC) scheme and on helping farmers with procurement support for paddy, maize and mustard.

Chief Minister Himanta Biswa Sarma took oath for a second consecutive term on 12 May 2026. The state government has said it will continue to empower farmers with schemes and policies that help raise their income. The zero interest crop loan scheme remains part of this support for the farming community.

What is Assam Zero Interest Crop Loan Scheme 2026

Under Assam Zero Interest Crop Loan Scheme, the state government offers 100% subvention on the interest of crop loans up to Rs 2 lakh, which brings the payable interest rate to zero. The zero interest farm loan scheme aims to support financial inclusion and increase the reach of credit to rural areas, mainly to farmers. Zero interest crop loans are among the first such steps to drive agricultural loans and support the rural economy.

This is one of the first agriculture loan schemes in the country to offer 100% subsidy on the interest rates of loans. The state government had set aside Rs 25 crore for this scheme for the financial year in which it was launched.

Assam Govt Schemes for Rural Development in Budget

Assam is mainly an agrarian economy, so the rural economy and the growth of the agriculture sector are central to helping people come out of poverty. One of the key enablers for growth in this sector is the expansion of low cost institutional credit along with the development of other required infrastructure.

Assam Farmers Credit Subsidy Scheme (AFCSS)

Under AFCSS, Assam government decided to deposit 25% of the total amount repaid by the farmers or Rs 25,000, whichever was less, per such account. A total of 1,39,130 farmers got benefit under the Assam Farmers Credit Subsidy Scheme. The state government has already released Rs 164 crore for AFCSS Assam. This scheme has helped farmers access institutional credit across Assam by clearing the credit flow. It has also improved the credit culture among farmers.

Financial Incentives For Farmers Using Kisan Credit Card (KCC)

To steer the growth of formal credit in the rural economy, Assam government started the activation of inactive Kisan Credit Cards. To help this process, a one-time cash incentive of Rs 10,000 was given to each farmer for renewing their inactive Kisan Credit Cards. As a result, the state now has 11,82,640 active Kisan Credit Cards with a total outlay of Rs 48.16 crore in the form of one time incentives received by farmers in the year 2018-19.

Chief Minister's Samagra Gramya Unnayan Yojana

Chief Minister's Samagra Gramya Unnayan Yojana is one of the most ambitious multi-sectoral schemes of the government which aims to double farmers' income within a period of 5 years. For this, a mega mission society was set up with a governing council chaired by the Chief Minister. For the benefit of the agriculture sector, under the Chief Minister's Samagra Gramya Unnayan Yojana, Assam government distributed 9,135 tractors with a total expenditure of Rs 454.53 crore.

For the financial upliftment of the youths of the state and to make them self employed, Assam government, through the 'Ghare Ghare Pukhuri Ghare Ghare Maach' scheme under the Fisheries vertical of the Chief Minister's Samagra Gramya Unnayan Yojana, provided training to beneficiaries and in parallel distributed Rs 60 lakh to them to start pisciculture as a means of livelihood. Further under this scheme, the government has developed 444 sports fields in the rural areas of the state with a total outlay of Rs 66 crore.

In the Veterinary sector, the government has launched several projects like special intervention for livelihood and employment generation for youths in the livestock sector in Bokakhat LAC, Sootea LAC, Jalukbari LAC and Majuli LAC. Similarly, the government has launched an integrated dairy value chain in Sitajakhala dairy cluster in Morigaon District. A special mention should also be made here of the Mini milk processing plant and other activities under Kannayeka Bohumukhi Pam, Jamuguri hat in Sonitpur District which is truly helping the rural economy of the state.

Assam Adarsh Gram Yojana

Assam government had also announced another important scheme, namely Assam Adarsh Gram Yojana, to transform rural Assam. Although this scheme could not take off due to the CAA protests followed by the Covid-19 crisis, the government has already made the financial resources for the implementation of this scheme with the field level functionary. With the support of the MLAs and the Deputy Commissioners, Assam government will implement this scheme in the years to come.

Efforts to strengthen the Gaon Panchayats

While the government has taken significant steps for increasing the human resources available at Gaon Panchayat level, it is also working towards increasing public participation in the development process. As a part of this, the government intends to set up Farmers Clubs, Mahila Clubs and Sports Clubs at each Gaon Panchayat. Going forward, each Panchayat would also have a library with reading room and computer facilities. This would create a suitable environment for rural youths to prepare themselves for their lives and careers ahead.

Check more details through the official website of the Finance Ministry of Assam or through the Assam Budget 2026-27 announcement. For more schemes, visit the Assam government schemes list.