Zero Interest Farm Loan in Gujarat – For all the Farmers

Zero Interest Farm Loan upto 3 Lakhs in Gujarat – For all the Farmers

Farmers find it difficult to make a profit due to the bad situation of the agricultural produce market. To assist these poor farmers, the state government of Gujarat has been on a scheme launching spree. The latest in the line is the announcement of Zero Interest Farm Loan Yojana. The program will free the farmers from the pressure of paying interest amounts for the credit they have acquired.

Zero interest farm loan in Gujarat

Announcement details of the scheme

The announcement of the implementation of the program was officially made by the Chief Minister of the Gujarat, Mr. Vijay Rupani. The deceleration of the scheme was made in the city of Gandhinagar, in October, 2017, when the celebration of Gujarat Gaurav Mahasammelan was in full swing. The activities and monitoring of the program will be done by the respective Farmers Welfare Department of Guharat.

Key features of the scheme

  1. Empowering farmers in Gujarat – The benefits of this zero interest schemes will be given for the betterment and assistance of the farmers, of the Gujarat state. Apart from this, other assistances will also be given.
  2. Objective of the implementation – Most farmers in the state are poor and cannot tolerate the pressure of paying the high rate of interests. Thus, the primary aim of the state government is provide respite to these farmers, by paying the interest from the coffers of the state.
  3. Total credit amount – As per the guidelines of the scheme, the farmers, who have applied for agricultural credit that is not more than 3 lakhs, will not have to worry about the payment of the interests.
  4. Effective interest rates – Earlier, the farmers had to pay only 1% of the total interest amount. The rest of the interest was to be divided among the state and the central authorities, where each will pay 3%. But in the recent update, the state will also pay the 1% that the farmers were supposed to pay.
  5. Number of beneficiaries – With the help of this farmer welfare program, the state authority will reach out to almost 2 lakh agricultural workers, in all parts of the state.

Budget for the scheme

As the application of the scheme takes place, the state government will have to keep aside huge sums of money to meet the financial requirements of the scheme. Paying the interest of lakhs of farmers is not a mean task. It means that the state will have to shell out around 700 crores for the successful implementation of the program, on a yearly basis.

With the implementation of this particular program, the state and the central government together will provide relief to the eligible farmers. As they need not worry about paying the interest rates, they can concentrate more on the agricultural activities. The application of the “zero interest” plan will also put a stopper on the farmer suicides and their losses.

Other Schemes –

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