Agriculture and Farmer Welfare

Interest Subsidy for Crop Loan

Interest Subsidy for Crop Loan is the scheme by Karnataka Government under which the government took the initiative of reducing the interest rate on the loan which farmers take as crop loan. Basically banks charges up to 9% of interest rate on the loan which farmers do pay, but when the time is hard and yield is very less, that is the time when farmers struggles to repay the loan  with such a rate of interest and which results into the suicide of farmers. And today it’s not only the issue of one state in India. Slowly, this is becoming the story of every other state. And to overcome this situation the govt. took the initiative and brought the scheme into action where farmers will get loan up to Rs. 3 lakhs with 0% interest rate for farmers because the interest will be paid by govt. or if not so the other case will be like govt. will give subsidy on the loan. Doesn’t matter what the case is farmers will suffer less and hopefully they will improve their economic conditions as well.

Benefits of Interest Subsidy for Crop Loan:

  • Loan up to Rs. 3 lakhs: The scheme will provide the loan to the farmers maximum up to Rs. 3 lakhs
  • Subsidy on rate of interest: Either there will be no interest at all, or the govt. will provide some subsidy on the interest
  • Better returns: Since the subsidy is there into the system there will better return at both end. Farmers will yield good and will pay the loan easily whereas govt. institutions granting the loan will get more applications and as a result more opportunities to mint the money for state welfare
  • Decreased suicide rate: Though it’s the extreme result but with this little help to farmer, there will be decrease in the suicide rate

Eligibility for Interest Subsidy for Crop Loan:

  1. Applicant must be a farmer
  2. Must be the resident of Karnataka state
  3. Must be the member of co-operative banks

Documents Required:

  1. Residential Proof (electricity bill, water connection bill, gas connection bill, ration card, voter id, Aadhar card, pan card or driving license)
  2. Bank passbook having (bank name, branch name, account holder name, IFSC & MICR code)
  3. 2 Passport size photographs of applicant (better to keep more copies)
  4. Agricultural land ownership proof

Application form:

To apply for the scheme farmer need to visit co-operative bank where he/she is the member, forms are available at the bank itself.

Whom to contact where to contact for more information about the scheme:

  1. Co-operative banks
  2. Gram Panchayat
  3. Panchayat Samiti
  4. Krishi Samiti

References and Details:

For more details about the scheme kindly visit the following link

  1. http://sahakara.kar.gov.in/shceme.html#2
3 Comments

3 Comments

  1. Mahesh Arali

    January 27, 2017 at 10:33 am

    I have taken croploan from Bagalkot District Co Operative Bank at Karadi of Rs. 3lacs . have to repay or rebind within 09/01/2017.But I am not knowledge about it and banks are not informed me to repayment. Today I am ready to repay the entire loan without interest. But bank manager informed me to pay 10.5 interest. What your suggestion?

    • Harshal Dhote

      February 9, 2017 at 7:22 pm

      Hi Mahesh, We will consult with bank officials on this and get back to you.

      thanks

    • Harshal Dhote

      February 13, 2017 at 3:57 pm

      Hi Mahesh,

      The common rate of interest for kcc is7% and it has to be repaid within 12 months. Interest has to be paid Because the full interest waiver for prompt repayment of kcc is up to 1 lakh only and above there may 1% to 2% interest as per goi.

      thanks

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