Maharashtra Interest-Free Farm Loan Scheme 2021

Maharashtra Interest-Free Farm Loan Scheme 2021 – Crop Loans at 0% Interest Rate to Farmers

Maharashtra Interest-Free Farm Loan Scheme 2021: Maharashtra government has announced to start a new Interest-Free Crop Loan Scheme 2021. In the Maharashtra Zero Interest Farm Loan scheme, the state govt. will provide loans up to Rs. 3 lakh at 0% interest rate to farmers. The entire interest amount would be borne by the CM Uddhav Thackeray-led government. In this article, we will tell you about the complete details of the Zero Interest Crop Loan Scheme.

Deputy Chief Minister Ajit Pawar mentioned in state budget 2021 that the farmers in-state will be allowed to repay their farm loans without any interest burden. Over 35 lakh farmers are likely to benefit from the scheme that will increase the financial burden on the state exchequer by around Rs. 1,200 crore. Now we are providing you the details of various schemes and reliefs provided by the state govt. in the agricultural sector in Maharashtra Budget 2021.

Maharashtra Interest-Free Farm Loan Scheme 2021

Maharashtra’s Interest-Free Crop Loan Scheme has been announced to raise the income of the farmers. The deputy CM while presenting the budget has announced various schemes and developmental projects for the farmers as Maharashtra is one of the largest farming states in the country. The Maha Vikas Aghadi (MVA) government announced that farmers would be given interest-free crop loans up to Rs 3 lakh.

Launch of Interest-Free Crop Loan Scheme in Maharashtra

The interest-free crop loan scheme would start from the Kharif season. The existing scheme of providing concessions in interest on crop loans is being converted into an interest-free crop loan scheme.

The objective of 0% Interest Crop Loan Scheme in Maharashtra

Paying interest on crop loans was often a problem for farmers. Keeping in view the objective to free farmers from interest burden and preventing them from turning defaulter, the government has decided to provide zero percent interest loans to farmers who take crop loans up to Rs 3 lakh and repay them on time. The amount of interest on crop loans will be paid by the government. The required funds will be provided by the government.

Zero Percent Interest on Crop Loans of Farmers in Budget

The state govt. of Maharashtra is focusing on the benefit of farmers’ income. For this purpose, the state govt. has decided to charge zero percent interest on the loans offered to them. The farmers will have to repay the loan at zero percent interest if the loan amount does not exceed Rs 3 lakh and if it is paid on time. Around 35 lakh farmers benefit from Interest-Free Farmer Loan Scheme in Maharashtra.

The zero-percent interest-free farm loan scheme would cost Rs. 1,200 crores. To prevent farmer suicides & to improve their conditions, the MVA government is already implementing the Mahatma Jyotirao Phule Farmer Loan Waiver Scheme. Under the scheme, an amount of Rs. 19,929 crore has been credited to the accounts of 31.23 lakh farmers. It also paved the way for farmers to get new loans. In 2019-20, crop loans amounting to Rs. 28,604 crore were disbursed, after debt relief, loans worth Rs 42,433 crore were disbursed in 2020-21.

Other Initiatives for Agriculture Sector in Maharashtra Budget

  • In Maharashtra Budget 2021, Dy. CM also made a provision of Rs. 2000 crore for strengthening the Agricultural Produce Market Committee (APMC). The APMCs lack basic facilities for farmers, who bring their produce there for sale. So, it is imperative to provide these facilities.
  • To provide a boost to agricultural growth, Maharashtra State Electricity Distribution Company Limited (MSEDCL) shall be given a share of Rs. 1,500 crore every year to provide electricity connection for pumps.
  • Farmers who are yet to settle the bill of electricity have been provided a 33% concession by the government and if the farmers clear 50% of the remaining arrears by March 2022, an additional 50% of the remaining amount will be waived off.
  • An amount of Rs. 30,411 crore shall be waived off by the state government which amounts to 66% of the original pending bills of 44.37 lakh farmers.
  • An amount of Rs. 2100 crore has been allotted for the creation of markets and value chain projects under the scheme namely the Balasaheb Thackeray Agribusiness and Rural Transformation Project.
  • About 500 new Punyashlok Ahilya Devi Holkar vegetable nurseries will be developed to set up at least one new nursery in each taluka.
  • The Maharashtra govt. has announced to provide Rs. 600 crore for research in 3 years to 4 agricultural universities in the state.
  • Under Sharad Pawar Gram Samrudhi Yojana, grants will be provided to rural beneficiaries for the construction of permanent cowsheds, goat rearing, or poultry sheds and composting.

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Maharashtra Interest Free Farm Loan Scheme 2021 – Crop Loans at 0% Interest Rate to Farmers

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