Bhubaneswar:21/7/23: Odisha government today announced to provide an interest-free crop loan to farmers of up to Rs.1 lakh and Crop loans above Rs.1 lakh to Rs.3 lakh at 2 per cent interest.
It was informed by a senior official after the important meeting of the State Cabinet.
Earlier, interest-free crop loan was being provided up to the limit of Rs.50.000/- under FACIA. During the year 2022-23, 32.43 lakh small and marginal farmers availed crop loans from Cooperative Banks 1 PACS within Rs.1 lakh at 0% interest rate per annum.
In order to compensate for the loss sustained by the Cooperative Banks / PACS on lending crop loans at a directed rate of interest as stipulated by the Government, the State is providing interest subsidy/subvention to the Cooperative Banks.
The Cabinet today approved the provision of Rs.5700 crore for implementation of the State sector Scheme “Interest Subsidy-Subvention to the Cooperative Banks /PACS for five years from 2023-24 to 2027-28 to ensure adequate credit flow in agriculture at an affordable rate of interest to the farmers in the State.
Officials said the availability of adequate and hassle-free credit at a cheaper rate to farmers has been the top priority of the State Government. To ease off the interest burden of crop loans on farmers, the State Government introduced an interest subvention Scheme to provide Short Term Credit to farmers at subsidized interest rates for their farming operations.