Lucknow. The Uttar Pradesh government has taken a big step towards strengthening the rural economy and making small farmers financially capable. In the cabinet meeting held on Tuesday, special facility of long-term loan for small and marginal farmers was approved. The objective of the government is to provide easy financial assistance to the farmers for investment in farming and related activities.
Farmers will get loan up to Rs 6 lakh
Under the Chief Minister Krishak Samriddhi Yojana, a maximum loan of up to Rs 6 lakh will be provided to eligible farmers. 6 percent annual interest rate will be applicable on this loan. With this, farmers will have to bear less financial burden than the expensive loans they usually get.
5% subsidy on timely payment of installments
The second major feature of the scheme is the 5 percent government subsidy on interest. However, its benefit will be available only to those farmers who keep paying their loan installments within the stipulated time limit. That means farmers making regular payments will get additional relief.
Promotion of employment along with farming
The government believes that by providing long-term capital at affordable rates, small farmers will be able to invest better in farming. This is expected to increase agricultural activities as well as employment opportunities at the local level in the villages. The scheme is also considered useful in making farmers financially self-reliant. This scheme will be operated through Uttar Pradesh Cooperative Village Development Bank.
Will get relief from expensive loans
According to the information, earlier the interest rate on loans received from NABARD was around 11 to 11.50 percent. In such a situation, it could be difficult for small farmers to repay the loan. In the new system, the provision of concessional interest rate of 6 percent and 5 percent subsidy on timely payment has been made with the aim of reducing the financial burden of the farmers.