Arunachal Pradesh government has decided to provide zero interest crop loan to farmers of the state giving them easy access to formal credit through banking channels.
A notification from the state finance department said the government has decided to launch the Chief Minister’s Krishi Rinn Yojana (CMKRY) to provide interest subvention of four percent on crop loan/kisan credit card limit up to Rs 3 lakh sanctioned by all banks to all farmers of the state during the current financial year.
The farmers will get interest relief at the rate of 3 percent per annum on repayment of their short term production credit (crop loan) within one year of disbursement and drawal of such loan.”This interest subvention will be over and above the subvention given by the Centre to banks and the farmers as per the policy issued by RBI and NABARD,” the notification said.
In effect, farmers who take loan up to Rs 3 lakh and make timely repayments, will get access to zero interest credit facility.
The notification said NABARD will act as channel partner for reimbursement to banks against interest subvention amount claims in prescribed format.
It said benefits under the scheme will be extended to farmers availing KCC/crop production loan from commercial banks, APRB (Arunachal Pradesh Rural Bank) and Arunachal Pradesh State Cooperative Apex Bank (APSCAB) Limited on the same terms and conditions prescribed by RBI and NABARD.
Chief Minister Pema Khandu has set a target of 7,500 farmers to be covered under crop loan under the CMKRY in this financial year. The circle officers will function as financial extension officers and help the banks in timely recovery of crop loans, the notification added.