The state government of Gujarat has announced zero percent interest loan scheme for the state farmers. Under the scheme, the state government will be providing loans to state farmers at 0% interest rate. Loans up to Rs. 3 Lakh would be provided under the scheme. The scheme was announced by the state govt. at Gujarat Gaurav Mahasammelan at Gandhinagar on 16th October 2017.
Earlier, the government was providing farm loans of up to Rs. 3 Lakh at effective interest rate of 1%. Out of the 7% of interest rate, 3% was being borne by the state and 3% by the central govt. but now, the additional 1% will also be borne by the state government to bring down the effective interest rate to zero.
The scheme will cost the state about Rs. 700 Crore per annum. The scheme will benefits about 25 Lakh farmers in the state. About 3 weeks ago, the Gujarat state government also announced to procure groundnut at Rs 900 per 20 kg against the market price of Rs 600-650.
Zero Interest Farm Loan Scheme
The scheme of providing farm loans at subsidized interest rates is already going on but the government has not issued any detailed guidelines about it.
However, once implemented, the scheme will prove to be of a great help for the state farmers. The scheme will further reduce the burden of interest from the farmers and will help them increase their income and eventually the income and living standard.
Complete details information about the scheme would be available only after it is officially launched.
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