Sahakar Kisan Kalyan Yojana | 15 Nov 2024

Why in News?

Recently, the Rajasthan government introduced the Sahakar Kisan Kalyan Yojana, first-ever interest subvention scheme for long-term cooperative agricultural and non-agricultural loans.

• This scheme aims to boost farm output and increase farmers' incomes.

Key Points

• About the Scheme:
  • Under the Sahakar Kisan Kalyan Yojana, farmers secure loans from primary cooperative land development banks and Central cooperative banks in Rajasthan.
  • The scheme incentivizes timely loan repayments, offering lower interest rates through subsidies.
• Interest Subsidies:
  • Farmers will receive a 7% interest subsidy on agricultural loans if they repay on time.
  • A 5% subsidy will be provided for timely repayment of non-agricultural loans.
• Purpose:
  • Farmers often take cooperative loans for deepening tube wells, drip irrigation, land levelling, greenhouse setup, solar installations, vermicompost production, silkworm rearing, and beekeeping.
• Financial Provisions and Interest Rates:
  • Rs 39.75 crore has been allocated for the interest subsidy.
    • With the subsidy, farmers will pay a reduced interest rate of 4% on agricultural loans and 3.5% on non-agricultural loans.