Arunachal govt to provide zero interest crop loan to farmers

Itanagar: Arunachal Pradesh government has decided to provide zero interest crop loan to farmers of the state giving them easy access to formal credit through banking channels.

A notification from the state finance department said the government has decided to launch the Chief Minister’s Krishi Rinn Yojana (CMKRY) to provide interest subvention of four per cent on crop loan/kisan credit card limit up to Rs 3 lakh sanctioned by all banks to all farmers of the state during the current financial year.

“This interest subvention will be over and above the subvention given by the Centre to banks and the farmers as per policy issued by RBI and NABARD,” the notification said.

The farmers will get interest relief at the rate of 3 per cent per annum on repayment of their short term production credit (crop loan) within one years of disbursement and drawal of such loan.

In effect, farmers who take loan up to Rs 3 lakh and make timely repayments, will get access to zero interest credit facility. Khandu has set a target of 7,500 farmers to be covered under crop loan under the CMKRY in this financial year. The circle officers will function as financial extension officers and help the banks in timely recovery of crop loans, the notification added. (PTI)