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Interest-free crop loans up to Rs 3 lakh for farmers who repay regularly

The Cabinet converted the existing scheme of providing concessions in the interest on crop loans into interest-free crop loans up to Rs 3 lakh to the farmers who repay their loan on time.

By: Express News Service | Mumbai |
June 10, 2021 10:26:11 pm
At present, the farmers who repaid their crop loan up to Rs 1 lakh on time were given 3 per cent concession in interest while the concession was 1 per cent for loans between Rs 1 lakh and Rs 3 lakh. (Representational)

The Maharashtra Cabinet on Thursday decided to provide interest-free crop loans up to Rs 3 lakh to farmers who repay loans regularly. The decision comes after Deputy Chief Minister Ajit Pawar made an announcement about it during the budget session in March.

The Cabinet converted the existing scheme of providing concessions in the interest on crop loans into interest-free crop loans up to Rs 3 lakh to the farmers who repay their loan on time. Under the existing Dr Panjabrao Deshmukh Interest Subsidy Scheme, the interest concession is given to farmers who repay their short-term crop loans within the time limit. At present, the farmers who repaid their crop loan up to Rs 1 lakh on time were given 3 per cent concession in interest while the concession was 1 per cent for loans between Rs 1 lakh and Rs 3 lakh.

Officials said the decision has been taken to give an overall concession of 3 per cent on crop loans up to Rs 3 lakh. The Centre also gives a 3 per cent concession on crop loans up to Rs 3 lakh. So, the crop loans up to Rs 3 lakh will be interest-free loans and farmers can avail of it from the current financial year, an official said.

Balasaheb Patil, Minister for Co-operation, said the decision will put an additional financial burden of Rs 96 crore on the state. “Overall 45 lakh farmers are likely to benefit from the decision. But the decision may prompt farmers to seek loans from banks and the beneficiary numbers may go up further,” said Patil while speaking to mediapersons.

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