New Short-term credit scheme for farmers

Ministry of Agriculture, Kerala is about to announce a new short-term credit scheme for the farmers in the state. Under this scheme the farmers who need money to finish the pending agricultural projects will be provided with required assistance by the way of loans. This loan facility will be provided to the farmers through Primary cooperative credit societies and Kerala gramin banks. The assistance under this scheme will be provided for a period of 1 year. Minimum common interest rate for these loans is decided as 6.4%. This scheme tends to ensure welfare of the farmers in the state. It will benefit the farmers in finishing the long pending agricultural activities and projects. This scheme is likely to start from next week.

Scheme Overview:

Objectives and Benefits:

• The main objective of the scheme is welfare of the farmers across the state
• Under this scheme, the farmers will be provided with credit support by the way of short-term loans officially from primary cooperative credit societies and Kerala gramin banks
• It aims at relieving them from the vicious debt circle of the money lenders
• Interest on loans provided under this scheme is decided at a minimum rate of 6.4%
• Repayment of loans will be in easy installments
• It aims at welfare and benefit of the farmers in the state

Scheme Details:

• Ministry of Agriculture, Kerala government is about to start a new scheme for providing short-term credit to the farmers in the state
• According to the department officials, this scheme is likely to start in the next week
• Implementation of the scheme will be taken care by the state department of agriculture
• Under the scheme farmers will be provided with assistance in the form of short-term loans
• These loans will be provided to the farmers for completing their unfinished projects/ activities which were pending due to lack of money
• These loans will be provided to the framers for a period of 1 year
• Interest rate is about to be fixed at the rate of 6.4% which is low as compared to the similar loans provided by the public and private sector banks
• It tends to relieve the farmers from the vicious debt circle of the money lenders
• In case of any support or help the farmers can reach out to the Krishi Bhavans
• This scheme will thereby tend to provide financial assistance and credit to the farmers thus ensuring their benefit and welfare.
• Crop insurance schemes will also be provided to the framers to assist in overcoming the crop losses suffered
• Farmers in the state are also demanding for an increase in the credit limit in view of the pandemic effects