Rs. 736 crore Interest Subsidy approved for the farmers of Rajasthan

• 06 Apr 2023

Why in News?

On 4 April 2023, Rajasthan Chief Minister Ashok Gehlot approved a financial proposal of Rs 736 crore to provide interest-free crop loans to farmers.

Key Points

• The Chief Minister has approved a grant amount of Rs 560 crore for the farmers under the interest-free crop loan grant scheme and Rs 176 crore under the compensatory interest grant scheme.
• With this decision of the Chief Minister, farmers of the state will be able to get interest-free loans. This will increase their income and their standard of living will be better.
• A 5 percent interest subsidy will be given to the farmers who repay the long-term agriculture cooperative loan on time. Along with this, approval has been given to give subsidies on housing loans to the farmers who have built houses on their farms.
• In this, from 1 April 2014, the farmers who repay the long-term agricultural cooperative loans on time will get a 5 percent interest subsidy every year from the state government. Along with this, from the financial year 2023-24, a 5 percent interest subsidy will be given every year to the farmers who have taken housing loans to build houses on their farms.
• It is notable that in the budget 2023-24, Chief Minister Ashok Gehlot announced an interest-free crop loan distribution scheme and interest subsidy for farmers.