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Gujarat state government has made a new announcement where farmers of the state will be able to take loan on zero percent interest rate. The state government will pay the interest amount on behalf of the farmers. With implementation of such scheme nearly 25 Lac farmers will get benefitted.

Announcement Details

At the Gujarat Gaurav Mahasammelan held in Gandhinagar, Gujarat, the Chief Minister of the state Shree Vijay Rupani made an announcement, on Monday 16th Octo17 that now the farmers will be able to take crop loan up to Rs. 3 Lac at zero percent interest rate. He also stated that 25 Lac farmers will get benefitted from this scheme.

Key Features

  • Objective: Since a long time farmers are protesting for their current situation. To make them loan burden free all the state governments along with central government is taking initiatives. This is one of the many schemes in favour of farmers in the state where the farmer will get benefitted. Now farmers can get crop loans without interest payment.
  • Interest Subvention: Currently farmers are paying 7% interest loan in the state. The central government has recently stated that 3% of it will be borne by the central government and 3% will be paid by the state government. Remaining 1% will have to bear by the farmer. Now the CM said that the rest 1% will also be paid by the Gujarat state government.
  • Beneficiary: All the small and medium farmers are the main beneficiaries of the scheme. 25 Lac farming families will get benefitted from the scheme, as per the announcement.
  • Loan Waiving Scheme: Since January the state has implemented the loan waiving scheme for the farmers. Under which a portion of loan amount will be waived off. Now with the zero interest crop loans, the state government has taken another step towards the betterment of the farmers across the state.

Budget

For this scheme the state government has allotted Rs. 700 Cr. It can be more than that as well. It is inevitable that paying a lump sum amount of interest on behalf of farmers will turn out to be additional burden on state government. However as per the current situation it seems the ruling party will not leave any stone unturned to provide farmers a better standard of living.

Conclusion

Apart from Gujarat 4 other states namely Uttar Pradesh, Maharashtra, Rajasthan and Andhra Pradesh also started the loan waiving scheme. In recent time Arunachal Pradesh state government too has started similar kind of crop loan system. This will put extra burden on government but farmers will definitely gain much from these schemes.

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