Arunachal- Zero Interest Crop loan to farmers

Itanagar

Alive to the concerns of marginal farmers, State Government under the leadership of Chief Minister Pema Khandu has decided to provide facility of Zero Interest Crop loan to farmers of the state to enable them easy access to formal credit through banking channels.

According to a notification from Finance department dated May 7, 2017 says that the Government has decided to launch “Chief Minister’s Krishi Rinn Yojana” under which the state government would provide interest subvention of 4% on crop loan/kisan credit card limit upto Rs. 3 Lakhs sanctioned by all banks to all farmers of the state during the current financial year. This interest subvention will be over and above the subvention given by Government of India to banks and the farmers as per policy issued by RBI/NABARD.

The farmers would also get interest relief at the rate of 3% per annum who promptly repay their short term production credit (crop Loan) within one years of disbursement/ drawal of such loan. In effect, farmers who take loan upto Rs 3.00 Lacs and make timely repayments will get access to zero interest credit facility.

The notification further says that NABARD will act as channel partner for reimbursement to banks against interest subvention amount claims in prescribed format.

A certificate of area and crop being cultivated issued by circle officer will be accepted as valid documents by banks for issuance of Kisan credit card to the farmers, the notification says.

Benefit under scheme will be extended to farmers availing KCC/ crop production loan from commercial banks, APRB and APSCAB Ltd at the same terms and conditions prescribed by RBI/ NABARD. Banks will make available the KCC loan application formats being use at present to all the farmers willing to apply for KCC/ short term crop loan.

Khandu has set a target of 7500 farmers to covered under crop loan under Chief Minister’s Krishi Rinn Yojana in this financial year. The district- wise/bank wise target will be circulated separately to all DC’s and concerned banks. This target will be reviewed in the DLCC meetings and SLBC meetings. Any bank which fails to meet the stipulated target would be reported to RBI and Department of Financial Services, he said.

The circle officers will function as Financial Extension Officers of the state government and also help the banks in timely recovery of crop loans. The Government has issued instruction to the Banks and district administration to give adequate publicity to the scheme so that the farmers can avail the benefits.