Schemes by GOI for
Credit Facility for Farmers
This scheme helps farmers to avail crop loan and term loan needs from a large network of credit institutions like regional banks, commercial banks and cooperative credit institutions throughout the country.
Types of credit facilities:
- Interest Assistance Collateral / security-free loan: Crop loan upto Rs.3 lakhs at 7% rate of interest. This interest rate becomes 4% due to 3% interest subvention incentives provided to those farmers who repay crop loan on time. No need of collateral security for farm loans up to Rs 1.6 lakh.
- Kisan Credit Card: Farmers can avail crop loan through Kisan Credit Card. Loan /credit limit is fixed on the basis of crop sown and area under cultivation. Kisan Credit Cards are valid for 3-5 years. Farmers are also provided risk coverage in the event of accidental death/ disability. Crop coverage loans are covered under the Crop Insurance Scheme.
- Investment Loan: Loan facility to the farmers is available for investment purposes in the areas viz. Irrigation, Agricultural Mechanization, Land Development, Plantation, Horticulture and Post-Harvest Management.